I'm looking at incorporating my sole proprietorship as an S Corp. (An alternative I'm also looking into is an LLC taxed as an S Corp).
My existing company already has income and expenses in 2020. Even if I filed paperwork to incorporate today, I'd still desire to have this income and expense on the books for the year for my personal tax return.
I understand that assets can be transferred to the corporation when incorporating in exchange for shares, but how do I recognize this existing income and expense?
Do I still file a Schedule C for the portion of time that my business operated unincorporated, essentially recognizing the business in both it's states, as sole proprietor and as well as in it's incorporated state?
Please let me know where I can find reference material surrounding this.
The primary purpose for looking into an S Corp is to save money on my tax return and avoid the Self Employment tax and take advantage of any other potential tax opportunities that exist in these structures.