An S-corporation isn’t a separate entity you form so much as a tax election you make — usually on an LLC or corporation — that lets profitable owners save on self-employment tax by splitting income between a reasonable salary and distributions. Marion Tax Service handles the election and, crucially, the parts that make it actually work.
We file the federal election (Form 2553), make the matching New Jersey S-corp election, and set up the payroll needed to pay yourself a reasonable salary — without which the IRS can undo the whole benefit.
What’s Included
S-corp formation and election covers the full setup:
- Entity formation or confirmation (LLC or corporation as the base)
- Form 2553 federal S-corporation election, filed on time
- New Jersey S-corporation election with the state
- Federal EIN and state tax-account registration
- Reasonable-salary planning so the savings hold up
- Payroll setup to run the owner’s W-2 salary
- A structure that ties to the 1120-S we’ll later file
Who It’s For
An S-election fits owners profitable enough to benefit:
Profitable Sole Props
Schedule C filers whose profit is high enough that an S-election cuts SE tax.
Growing LLCs
LLC owners ready to elect S status as income rises.
New Owner-Operators
Founders whose projected profit justifies starting as an S-corp.
Existing Corporations
Corporations that want pass-through S treatment instead of C-corp tax.
Why Marion Tax Service
The S-election only saves money if the salary, payroll, and return are coordinated — get the reasonable salary wrong and the IRS can recharacterize it. 50+ years of experience sets it up to hold up.
We form it, elect it, run the payroll, and later file the 1120-S — one firm keeping the whole structure consistent.
Related services: S-Corp Tax Returns Payroll LLC Formation.