What is the bottom line when considering election to be treated as an S Corporation?

The decision to elect S Corporation status, as opposed to operating as a limited liability company taxed as a partnership, will be driven almost entirely by a careful tax analysis of the projected operation of the business and the ability of the business to remain compliant with the S Corporation rules. This requires close coordination with your tax and legal advisors before moving forward with the formation of the business and the making of any tax elections.