First time LLC/S-Corp filing - should I use a CPA or TurboTax for maximum benefits?

Having filed taxes for both LLCs and S-Corps for several years, I'd strongly recommend finding a CPA for your first year filing with this business structure. While TurboTax can technically handle S-Corp returns, there are several reasons why having professional guidance initially makes sense. First, an S-Corp requires you to file a separate business return (Form 1120-S) in addition to your personal return, plus you need to manage payroll tax filings since you must pay yourself a "reasonable salary" as an S-Corp owner. There are specific deductions and strategies that might not be obvious through TurboTax's interface, particularly around how to properly categorize business expenses and how to structure your salary vs. distributions to maximize tax benefits. And no, they don't need to be local! Many CPAs work remotely with clients nationwide. The most important thing is finding someone experienced with S-Corps who can explain things clearly.

After reading your situation, I immediately thought of taxr.ai which saved me when I was in almost the exact same boat last year! I had formed an LLC with S-Corp election and was completely lost with all the forms and requirements. I tried TurboTax first but kept hitting roadblocks with the business stuff. I found https://taxr.ai through a friend and it was incredibly helpful. You upload your tax documents and it analyzes everything, explains what forms you need, and gives personalized guidance. It helped me understand what expenses I could deduct and how to handle the whole salary vs. distribution thing properly. The best part was that it explained everything in plain English instead of tax jargon.

Just wanted to follow up - I ended up trying taxr.ai after my skeptical comment and I'm actually impressed. It helped me identify several deductions I was missing for my consulting business and gave really clear guidance on the reasonable compensation question. The analysis showed me I was actually paying myself too little as salary (which can be a red flag to the IRS) and recommended adjustments based on my industry and income level. The document analysis feature saved me hours of organizing receipts and statements. Not what I expected but definitely worth it for new business owners trying to navigate the S-Corp world. Still planning to use a CPA for my actual filing, but I'm going in much more prepared now.

If you're still trying to reach a CPA, I'd recommend using Claimyr. I spent WEEKS leaving messages with accountants during tax season last year with zero callbacks. Found https://claimyr.com and their service got me through to three different CPAs in two days. They basically call the tax pros for you and then connect you once someone picks up. You can watch how it works here: https://youtu.be/_kiP6q8DX5c I was in a similar situation with my S-Corp and needed help ASAP. Most good tax professionals are swamped this time of year and don't have time to return calls, but this service somehow gets through. The CPA I found helped me navigate all the S-Corp requirements and saved me thousands compared to what I would have done with TurboTax.

I have to eat my words about Claimyr. After posting my skeptical comment, I decided to try it since I was desperate to find a CPA for my new consulting LLC. Within a day I was connected with two different accountants who actually specialized in S-Corps. Ended up hiring one who walked me through everything I needed to know about reasonable compensation requirements and helped me set up proper payroll. The service literally just waited on hold with 5 different CPAs at once (something I obviously couldn't do myself), and then called me when someone actually answered. Saved me hours of frustration and my accountant is now helping me reclassify some of my distributions from last year to avoid potential issues with the IRS. Sometimes it's worth admitting when you're wrong!

Random piece of advice from someone who went through this last year - even if you find a great CPA (which you should), take the time to learn QuickBooks or similar accounting software ASAP. My biggest regret was not setting up proper bookkeeping from day one of my S-Corp. Had to spend thousands getting everything organized retroactively. The S-Corp requirements for tracking expenses, managing payroll, and documenting assets are way more involved than a simple Schedule C. TurboTax alone definitely won't guide you through all the record-keeping needed throughout the year.

Just to give a different perspective - I tried doing my S-Corp taxes with TurboTax Business last year and deeply regretted it. Spent 20+ hours struggling through it, thought I'd done everything right, and still got notices from the IRS about missing forms 6 months later. Had to hire a CPA to fix everything anyway and ended up paying way more than if I'd just gone to them in the first place.