S CORP VS OTHERS

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RCRNR
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S CORP VS OTHERS

Post by RCRNR » January 13th, 2019, 8:45 pm

I personally in all my businesses become an S Corp for the tax advantage. I have noticed lots of posts as well as many in the business I have spoken with are SPs which is great if you feel the government is properly handling your Self Employment Tax. As a S Corp you MUST pay yourself A Reasonable Wage on that wage you pay tax like a SP. The rest you take in distributions which are only taxed the federal portion which saves me 15% on them. You may want to speak to your accountant about this and what the IRS considers a Reasonable Wage. Over the years this has saved ten of thousands but it must be done properly to avoid penalties fees and the government rearranging your pay structure. Down side is you must do payroll even if you are the only employee.

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Brent Deines
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Re: S CORP VS OTHERS

Post by Brent Deines » January 14th, 2019, 12:49 pm

We are an S-Corp as well but you can also form an LLC and elect to be treated as an S-Corp, which is probably what I would do if just starting out. I agree that talking with an accountant is best.
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RCRNR
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Re: S CORP VS OTHERS

Post by RCRNR » January 15th, 2019, 2:55 pm

Yes Brent always an llc as well to protect my personal assets.

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