Single Member LLC tax as an S Corporation

I have a single member LLC for my dental practice. This year (2008) is my first year of operations. I am considering electing to be taxed as an S Corporation. Is there anything I should know about this?

Answer

This is a complicated issue.

I would recommend talking with your accountant.

If you don't have one, you can at least get a good grounded understanding in entity taxation from a guide such as Tax Reduction Toolkit

The author of the TRT is a big fan of the S-corporation, as there are ways to avoid a portion of self-employment tax as compared to a sole-proprietorship or partnership.