You Must Maximize but Stay Compliant
It’s not enough to just convert your sole proprietorship to an S-corp, you’ll want to make sure that you make wise choices to abide by the IRS rulings on reasonable salaries, document requirements & 1120S tax returns.
Sole Prop vs. S-Corp
We'll help you compare LLC Sole Prop taxation to S-Corp taxation, so you can understand the differences and choose correctly.
Determine a Reasonable Salary
The most important part of ensuring you're making wise decision with you S-Corp election, is to manage your "reasonable salary". We work alongside businesses to ensure they're being as aggressive as possible, while being full of integrity.
You Owe Tax on Net Profit
• 12.4% Social Security Tax (up to limit of $147k)
• 2.8% Medicare Tax