4 ms·
I see... I’ve been using llc’s without s corp for all my consulting and side projects for a while (easy to start and kill them off). It looks like S corp does a
by sheeshkebab 8y ago
I see... I’ve been using llc’s without s corp for all my consulting and side projects for a while (easy to start and kill them off). It looks like S corp does add quite a bit of overhead though - although maybe it lowers taxes? Is that the reason?
- zrail 8y agoYou can significantly lower your SE taxes due (Social Security and Medicare) by giving yourself a salary lower than your profit. This comes at a cost of additional overhead (payroll and an accountant to prep the tax form, which is not a DIY project for at least the first year). There’s a threshold of about $100k profit where this begins to make sense.
- MatthewMcDonald 8y agoIt can lower your tax liability significantly. Mr Money Mustache has an article that covers some potential benefits: https://www.mrmoneymustache.com/2016/02/10/should-you-do-your-own-taxes/ https://www.mrmoneymustache.com/2016/02/10/should-you-do-you...