First of all, don’t panic! Next, fax my office a copy of it right away so we can look at it and determine the appropriate response. Remember, the IRS sends thousands of notices and letters out weekly. Most of them are simply asking for additional information or seeking a short explanation for something. The key is to let us see it right away. We will review it and get back to you immediately. Peace of mind is why you trust us, so let us take the worry off your mind!
Only with a lot of help! Seriously, I have taught whole seminars on this subject and can tell you that it is a confusing topic. It is not an easy answer because there are LOTS of variables to take into consideration if you want to make an intelligent decision (hey, I see lots of dumb decisions about entity choices made all the time…that’s easy to do!). So, honestly, my recommendation is to sit down with a CPA who knows the subject and deals with it regularly. Yes, it will cost a penny or two! However, doing it correclty now will save you thousands of dollars later to fix a bad decision. I have had to step in and fix too many wrong entity choices and can tell you that it is no fun and costs the client a LOT of money! Why not do it right the first time?