US S-Corp Election Decision Skill v0.2

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

What this file is, and what it is not

This file is a content skill that loads on top of us-tax-workflow-base v0.1. It provides a structured decision framework for evaluating whether a sole proprietor or single-member LLC should elect S-corporation status for federal tax purposes. It does not file Form 2553, prepare Form 1120-S, or run payroll — those are execution tasks that follow after the decision is made.

This is a decision skill, not a computation skill. Unlike the bookkeeping and computation skills in the pipeline, this skill produces a decision brief for the reviewer, not a tax return position. The decision brief presents the SE tax savings estimate, the incremental costs, the QBI interaction, state-specific issues, and a recommendation with confidence level.

Tax year coverage. This skill is current for tax year 2025 as of its currency date (April 2026). It reflects the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025), including the permanent QBI deduction and the rate increase to 23% for 2026+.

The reviewer is the customer of this output. The skill produces a decision analysis, not a filing. The reviewing Enrolled Agent, CPA, or attorney makes the final recommendation to the client.

Section 1 — Scope statement

This skill covers the S-corp election decision for tax year 2025 for taxpayers who are: