Should you be an S-Corp? Will you save in taxes? We specialize in helping small business owners, who make net profits higher than $80,000, convert to an S-Corp, stay compliant & maximize its benefit.
Typically, we see small business owners save between $3,500 and $8,500 a year in self employment taxes when they utilize an S-Corp.
There are certainly costs of compliance and administration, but overall, the S-Corp is one of the most powerful tax reduction tools for small businesses.
You will possibly reduce what is subject to the 12.4% social security tax.
S-Corps can often mitigate the income subject to the 2.9% medicare tax as well.