Solved
S-Corp Late Election & running one-time 2020
My new client is a single member LLC with W2 employees. He thought his prior accountant of many years filed an S-Corp election on his behalf at some point. He is busy guy who just signs his returns and sends money. He would not know that filing a Sch C meant not filing as an S-Corp. He takes a $10,000 draw each month, no paycheck and has approximately 7 employees who he pays through payroll. If we were to run a one time 2020 payroll for him, amend his 941 & 940, pay in the taxes & late penalties, would this set him up to meet the requirements for late election? Also if this is doable is the $120,000 salary enough? His net income after running the $120k salary would be about $500k. Thanks in advance for your input.
