HOW TO TRANSITION FROM C to S-Corp (and why)
If you are running a business as a sole owner and LLC, you are able to elect to be treated as an S-Corp for tax reasons.
In doing so, you will move business operations OFF OF your individual tax return which then eliminates the 15% self-employment tax on earnings up to $128,400 AND the 2.9% on income above $128,400.
Shareholders of an S-Corp are required to receive reasonable compensation from the business.
How much should you have been saving with this tax strategy? We typically see $3,000 – $15,000+!
Another bonus? This can be applied to previous, current, and future years!
Give us a call to talk through more tax and business strategies to help YOUR business grow!
Direct: 407-573-5166