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S-Corp Advantage

Posted by Sorge CPA Posted on June 30 2016

One of the main advantages to having your business taxed as an S-Corporation is that you can potentially reduce self-employment tax. 

 

For example you will end up paying self employment tax on 100% of what you make in a sole-proprietorship. Where as if you have an S-Corp you have the opportunity to pay yourself as the business owner and pay self-employment tax only on the income you allot for yourself. 

 

In general it is safe to start your business as a sole-proprietorship. However, when your business reaches a point when you would like more control over your tax liability be sure to connect with your accountant to discuss options with your business titling.