Sole Proprietorship vs. S-Corps for Taxes

Get the Most Tax Benefit Possible from an S-Corp

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The S-Corp could be the most powerful tax tool available.

In most cases, an S-Corp is able to save dramatically in taxes.
  • We. can determine if an S-Corp is right for you.
  • We can convert you to an S-Corp & build a perfect tax plan.
  • We will pay in your taxes through the payroll system & provide guidance on the reasonable salary.
  • We will file your 1120S tax returns at the end of the year and make sure you're compliant.

S-Corp Case Study: 
$100,000 Net Profit
ILLUSTRATION ONLY

Data
Before
After

Net Profits

$100,000
$100,000
($50,000 S-Corp Salary)

Social Security Taxes

$12,400
12.4%
$6,200
12.4%

Medicare Taxes

$2,800
2.8%
$1,400
2.8%

Total SE Taxes Due

$15,300
$7,650

Annual SE Tax Savings

0
$7,650/yr

LLC vs. S-Corp for Small Business

15.3% Self Employment Taxes

S-Corps are used to mitigate your self employment taxes, which are comprised of your social security and medicare taxes.

How is a Sole Prop Taxed?

Out of the gate, you are taxed as a sole proprietorship, which means you're 100% subject to self employment taxes. You must make the decision and c

How is an S-Corp Taxed?

S-Corps are different because you get income in two manners, your corporation will pay you a salary, and you'll take distributions as the owner.  The payroll is subject to the 15.3% SE tax, while the distribution is not subject to the SE taxes.

Maximizing the S-Corp

You'll need to work to maximize the tax benefits of an S-Corp, while obeying the IRS law and case law.  Your business must pay you a "reasonable salary", and we help you determine that.
Maximize the S-Corp's Tax Reduction Abilities

Discover if an S-Corp is right for you.

We help business owners determine if an S-Corp is right, and how it impacts your overall tax reduction planning.  We will help you set up the S-Corp, manage it and maximize it's tax reduction abilities.
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We work throughout the year to reduce your taxes while keeping you compliant and avoiding red flags & mistakes.

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We help businesses file their taxes with an eye on tax reduction & establishing perfect financials.

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