If you have a newly incorporated LLC or Corporation, you only have until March 15 to elect S-Corporation status for the 2016 tax year, using IRS Form 2553.

This is important because there could be significant tax consequences to you, if you do not elect for S-Corporation status.

As the owner of an LLC interest, not taxed as an S-Corporation, you will report your share of LLC income on your personal tax return as if you were a sole proprietor or a partner of the business. That means you will pay self-employment taxes on your full share of the LLC income for the year.

In contrast, if you set your business entity up to be taxed as an S-Corporation and pay yourself a reasonable, but small salary, you will only pay self-employment tax on your salary and the rest of the business income can be paid to you in the form of distributions that are not subject to self-employment tax.

This one decision can save you thousands or even tens of thousands of dollars on your taxes next year.

This decision is only one of many decisions that significantly impacts how much money you keep in your bank account when it comes to your business.