Can an S-Corp still make sense?
Trying to understand whether I missed the boat on an S-corp and whether it could still be worth it.
I’m a healthcare professional with W-2 income around $210k (combined with my husband's W-2) plus my 1099 income that is roughly ~$125k/year gross. In 2024, I got hit with a huge tax bill (around $50k owed) which made me realize I may not be structuring my income in the smartest way.
After talking to a colleague, it seems like an S-corp might make sense for the 1099 portion due to self-employment tax savings, but I’m confused about timing and whether it’s too late.
Main questions:
I filed an extension for my 2025 taxes - Can I retroactively elect S-corp status for 2025 (with late election relief, reasonable cause, etc?), or is that realistically off the table?
If it's possible, could it still be worth doing financially at around ~$125k gross 1099 income, even if there are penalties/payroll costs for filing late?
Just trying to understand if I completely missed the opportunity or if there’s still a path forward. Thank you!