Utilizing an S-Corporation for Your Business
#1
We’ll help you find out if an S-Corporation is the best route to go for your business. This depends on several factors including the owners and equity setup, the type of business you’re in, and whether or not you will save enough in tax to pay for the accounting and compliance.
#2
If you haven’t filed differently, you will be classified as a sole proprietor. An LLC is a legal designation – if you are one and didn’t elect to be taxed as an S-Corp and you’re also not a partnership you are a sole proprietor.
If this applies to you you’ll be paying self-employment taxes. Being self-employed, you’re responsible to pay both the employer and the employee part of self-employment taxes. This includes the taxes for social security and medicare taxes.
Your net income “flows-through” from your business to your individual 1040 tax return. You’ll owe SE (self-employment) taxes on your business’ net income up to a limit for the social security part.
#3
In order to become an S-Corporation, you must file form 2553 by the second month and fifteen days of the tax year in which you intend to make the change.
You will be requiring ongoing bookkeeping and more accounting support in order to keep up with the requirements of being an S-Corp.
Contact us today for a free consultation where we can dive deep into your business and how you could benefit from becoming an S-Corp.
Don't Settle for Less: You Deserve to Pay Only Your Fair Share to Uncle Sam and Not a Penny More
Go with the proactive accountants. We’ll help you pay only your fair share PLUS you’ll be on your way to scaling your business BIG TIME when you outsource the financial admin side of your business to us. Take the helm of your business as the entrepreneur and delegate the rest to us.