Ask Claude whether to convert an LLC to an S Corp, and miss that NYC taxes make it cost more

Posted

Aug 2, 2026 by mikeocool (Hacker News)

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Last checked

Oct 19, 2026

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Method:

How we verify

Evidence: Described by posterThe person describes what happened in words, without screenshots or video.

Beginner-friendlyNo logins, payments or coding needed. Low risk: paste the prompt and you should get something useful.

Outcome

mikeocool asked Claude about converting their LLC to an S Corp. Claude said it was a great idea and estimated how much they would save in taxes. Their accountant said it would actually cost more, because of how New York City taxes S Corps. They hadn't told Claude they lived in NYC, because it didn't occur to them that it mattered. Their takeaway: tax questions are full of details like this, often subtler than where you live.

Agent

Claude

The source didn't share its exact prompt, so we wrote this from what it describes.

Run this task now, exactly as written below. Everything you need is here, so start straight away and only stop if something required is missing or a rule below tells you to.

Goal: Help me understand whether changing my business's tax setup could save money, and what to ask my accountant.

Fill in before running:
- My business type and how it's taxed now: [DETAILS]
- Where I live and where the business operates (state and city): [LOCATION]
- Roughly how much profit I make and what I pay myself: [NUMBERS]

You're not my accountant or financial adviser. Show your working, label estimates as estimates, and tell me which points a professional or the official source should confirm.

Rules:
- Before giving any estimate, ask me for every fact that could change the answer, including state and city taxes.
- Show the costs of the change too: payroll, filing fees, extra returns and local taxes.
- Say clearly what you're unsure of.
- Don't tell me to do it; give me questions for my accountant.
- Check facts that can change (prices, opening hours, dates, availability, rules) against the official source, and tell me anything you couldn't verify.

Output: A plain summary of pros, cons and the facts that decide it, plus a list of questions for a tax professional.

You'll know it worked when: I go into my accountant meeting knowing what matters for my situation.

Run this task now, exactly as written below. Everything you need is here, so start straight away and only stop if something required is missing or a rule below tells you to.

Goal: Help me understand whether changing my business's tax setup could save money, and what to ask my accountant.

Fill in before running:
- My business type and how it's taxed now: [DETAILS]
- Where I live and where the business operates (state and city): [LOCATION]
- Roughly how much profit I make and what I pay myself: [NUMBERS]

You're not my accountant or financial adviser. Show your working, label estimates as estimates, and tell me which points a professional or the official source should confirm.

Rules:
- Before giving any estimate, ask me for every fact that could change the answer, including state and city taxes.
- Show the costs of the change too: payroll, filing fees, extra returns and local taxes.
- Say clearly what you're unsure of.
- Don't tell me to do it; give me questions for my accountant.
- Check facts that can change (prices, opening hours, dates, availability, rules) against the official source, and tell me anything you couldn't verify.

Output: A plain summary of pros, cons and the facts that decide it, plus a list of questions for a tax professional.

You'll know it worked when: I go into my accountant meeting knowing what matters for my situation.

Run this task now, exactly as written below. Everything you need is here, so start straight away and only stop if something required is missing or a rule below tells you to.

Goal: Help me understand whether changing my business's tax setup could save money, and what to ask my accountant.

Fill in before running:
- My business type and how it's taxed now: [DETAILS]
- Where I live and where the business operates (state and city): [LOCATION]
- Roughly how much profit I make and what I pay myself: [NUMBERS]

You're not my accountant or financial adviser. Show your working, label estimates as estimates, and tell me which points a professional or the official source should confirm.

Rules:
- Before giving any estimate, ask me for every fact that could change the answer, including state and city taxes.
- Show the costs of the change too: payroll, filing fees, extra returns and local taxes.
- Say clearly what you're unsure of.
- Don't tell me to do it; give me questions for my accountant.
- Check facts that can change (prices, opening hours, dates, availability, rules) against the official source, and tell me anything you couldn't verify.

Output: A plain summary of pros, cons and the facts that decide it, plus a list of questions for a tax professional.

You'll know it worked when: I go into my accountant meeting knowing what matters for my situation.

Before you finish: re-read my goal and constraints, check your answer against each one, and list anything you assumed or couldn't confirm.

Source

https://news.ycombinator.com/item?id=49140304