Why Become Taxed As An S-Corporation?

  •  S-Corps Provide Liability Protection just like a Limited Liability Company (LLC)

  • Only the money invested in the S Corporation by its shareholders is at risk, barring extreme circumstances. Personal assets are usually protected, as they are with LLCs

  • S-Corps Are Not Taxed…Only The Shareholders. In other words, if you have four partners and your S-Corp made $40,000 this past year, you’ll each claim $10,000 in taxable income from your S-Corp. While your S-Corp will need to file an IRS 1120 S form, S-Corps are “pass-through” entities, much like an LLC

  • S-Corps Appear More Legitimate in many people's mindset so it helps your business grow. Investors often view the corporate structure as more permanent than that of an LLC

  • S-Corps Can Sell Stock. To raise capital, corporations often sell stocks. LLCs can only sell interests in their company

  • S-Corps Can REDUCE Your personal annual tax liabilities

Basic Tax Related Benefits: 

  • No more Self-Employment Tax is paid as on a Schedule C of a 1040. This is a 15% SAVINGS alone when compared to filing a Schedule C on your personal 1040

  • Pay FICA and Medicare taxes on your “reasonable” salary ONLY which will be much less than paying 15% on the NET Profit of your business as you do when you file a Schedule C

  • All other profit is “passed-through” to your personal 1040 and taxed as normal income

Wondering How Much You Could Have Saved Last Year If You Had Made The Change?

Click The Button Below And Let One Of Our Enrolled Agents Tell You!!!