Can I convert my sole proprietorship income as s corporation income from before the corporation is formed?

Anton Waln: You can make an election to have your sole proprietorship treated as an S corporation when you file your 2011 taxes. You'll file the 1120S and it will be due on March 15th. You'll use form 2553 to make the election. The 2552 will be filed with your 1120S form.That said, I'm not as keen on the S corporation as I used to be. It's worth your while to sit down and prepare your taxes both ways to see what's most advantageous for you. Remember, if you chose to be an S corp, you will have to pay yourself a wage that is commensurate with what you'd be making if you weren't self employed. For some people, this could save them money, others not. There are deductions that are available to sole proprietors that aren't available to S Corps so you'll want to see what works best for you.If you make the election to be taxed as an S Corp, you basically have to use that for at least 5 years unless you get special permission from the IRS to change your status again. (Fi! rst election is easy, changing back is not.) You don't want to change unless you're sure that's what you want to do. Please hire someone who knows the ins and outs of S Corp and Schedule C rules. Knowing the right rules can save you thousands of dollars and protect you from IRS audits....Show more