Business Formation - Case Studies
An individual had his business incorporated by his former accounting firm. It was discovered a few years later that the firm did not follow through with the entire procedure and never completed the S-corporation election for the client's business. Due to this issue, the client's company was considered as a C-corporation by the IRS. This classification cost the client an additional 15% in tax liability for every year that his business was not an S corporation.
When the client switched his services to Krishnan Company, we were able to immediately identify the situation, attend to all his notices and promptly convert his business to the S-corporation as he had intended. This decreased the clients' tax liability by 15%.