Do You Want to Stop Overpaying the Self-Employment Tax?

Question: Have you noticed that the self-employment tax significantly drains your cash?

The S corporation can help you reduce the amount of federal employment taxes paid on your wages.

The S Corporation:

👉Deducts the W-2 wages;
👉Passes the remaining taxable income to you—the shareholder who reports the income on his Form 1040; and
👉Makes cash distributions to you tax-free—the shareholder.

The tax basis of your stock in a passed-through S corporation increases when it reports taxable income, so cash flow distributions are usually federal-income-tax-free.

This tax regime places S corporations in a more favorable position than equivalent businesses conducted as sole proprietorships, single-member LLCs, partnerships, and multi-member LLCs.

S corporations can pay shareholder-employees modest salaries and distribute the remaining corporate cash flow through federal-employment-tax-free distributions.

Do you want to stop overpaying self-employment income taxes?

Let’s Talk!

->Schedule Your Free Assessment Here<-