An S-Corporation might provide significant tax savings for your small business, we'll help you analyze if it's right for you, then help you properly implement & maximize your S-Corp.
How certain are you that you're not overpaying tax, and that you're taking advantage of every tax loophole available?
We'll make sure you never miss out.
We help set up & maximize S-Corps to help business owners do everything possible to reduce their taxes, scale their businesses and improve profitability.
Setting up an S-Corporation can lead to troubles with the IRS if it's not done correctly. We come alongside business owners and help them identify if the S-Corporation is right for them, then help them convert to an S-Corp, file the proper tax returns, stay compliant, and focus on their business.
Not all businesses should be an S-Corp, we'll help you with this.
We'll handle everything to convert to an S-Corp.
We make S-Corp tax returns easy.
We know how to get the most benefit from S-Corps without unnecessary risk.
It's not hard to set up an S-Corp, but many people make significant mistakes once they've converted to an S-Corp. We handle all the bookkeeping, accounting, tax payments, and tax returns for our small businesses, whether you're an S-Corp, Sole Prop, Partnership, or C-Corp.
We'll guide you to choose the right salary for your role in the business, avoiding the primary mistake of an S-Corp.
When you file a tax return for an S-Corp, business owners & even accountants can make major mistakes, we'll keep you in the clear.
We'll help you pay in your taxes throughout the year so you never fall behind or end up giving the government a loan by overpaying.
Florida's Leading S-Corp Accountant.
The main question entrepreneurs and small business owners have is whether or not they'll be able to reduce their taxes if they convert to an S-Corporation.
We are Reduce My Tax CPA, Tax & Accounting and while we're a Tax Accountant Near Fort Myers, we serve small businesses across the nation.
Let's quick discuss how service-based businesses, general contractors, and construction companies can achieve significant savings in their self-employment taxes by utilizing an S-Corporation instead of remaining a Sole Proprietorship.
First, let's define what a Sole Proprietorship and an S-Corporation are.
A Sole Proprietorship is the simplest form of business organization and it's what you start out as when you do business, where the owner is personally responsible for all of the business's liabilities and taxes which is not good.. On the other hand, an S-Corporation is a type of corporation that provides the owners with limited liability protection while also offering pass-through taxation benefits.
So, why would service-based businesses, general contractor, or construction companies benefit from choosing an S-Corporation over a Sole Proprietorship? The answer lies in the self-employment taxes.
As a Sole Proprietor, you are required to pay self-employment taxes on all of your business income, which includes both the employer and employee portions of Social Security and Medicare taxes. This can be a significant amount, as the self-employment tax rate is currently set at 15.3%.
This is because you can take a salary as an employee of the corporation and only pay Social Security and Medicare taxes on that salary portion. The remaining income, which is classified as a distribution, is not subject to self-employment taxes. This can result in significant tax savings, especially for service-based businesses, general contractors, and construction companies where the owners may have higher incomes.
It is important to note that the salary portion of an S-Corporation owner's income must be reasonable according to the IRS, and in line with industry standards. This is important because since only the S-Corp salary is subject to the SE Tax, it can be tempting to not pay yourself a salary at all, which is against the rules. The IRS knows it has to feed the social security benefits, so they put in this rule to prevent owners from avoiding self-employment taxes by paying themselves an unreasonably low salary and taking most of their income as a distribution.
In conclusion, service-based businesses, general contractors, and construction companies can achieve significant savings in their self-employment taxes by utilizing an S-Corporation instead of remaining a Sole Proprietorship. At Reduce My Tax CPA, Tax and Accounting, we can help you understand the tax benefits and guide you through the process of setting up an S-Corporation. Contact us today to learn more!
Welcome to Reduce My Tax CPA, Tax and Accounting and let's explore a little bit about the tax differences between an S-Corporation and a Sole Proprietorship and how they impact general contractors and construction businesses.
We help lots of contractors, construction companies and other general contractors, so we figured we'd hit on this just a little bit.
First, let's define what an S-Corporation and Sole Proprietorship are. A Sole Proprietorship is the simplest form of business organization, where the owner is personally responsible for all of the business's liabilities and taxes. On the other hand, an S-Corporation is a type of corporation that provides the owners with limited liability protection while also offering pass-through taxation benefits.
Now, let's discuss the primary tax benefits that a general contractor and construction business would experience by choosing an S-Corporation over a Sole Proprietorship.
The only tax s-corps help reduce are social security and medicare taxes that business owners and self employed individuals pay.
One of the main tax benefits of an S-Corporation is the ability to avoid self-employment taxes. In a Sole Proprietorship, the owner is required to pay self-employment taxes on all business income, which includes both the employer and employee portions of Social Security and Medicare taxes. However, in an S-Corporation, the owners can take a salary and only pay Social Security and Medicare taxes on the salary portion, while the remaining income is taxed at a lower rate. This can result in significant tax savings for general contractors and construction businesses.
Another tax benefit of an S-Corporation is the ability to deduct health insurance premiums. In a Sole Proprietorship, health insurance premiums are only deductible as a personal deduction on the owner's personal tax return. However, in an S-Corporation, health insurance premiums can be deducted as a business expense, reducing the company's taxable income and potentially resulting in lower overall taxes.
Finally, S-Corporations can also offer greater flexibility in deducting business losses. In a Sole Proprietorship, losses can only be deducted against other sources of income on the owner's personal tax return. In an S-Corporation, losses can be deducted against the company's income, potentially reducing the amount of taxable income and resulting in lower taxes.
In conclusion, general contractors and construction businesses can experience significant tax benefits by choosing an S-Corporation over a Sole Proprietorship. At Reduce My Tax CPA, Tax and Accounting, we can help you understand the tax differences and guide you through the process of choosing the best business structure for your needs. Contact us today to learn more!
Should your business become an S-Corp?
Here at Reduce My Taxes CPA, Tax & Accounting, we will analyze if it makes sense for your business to convert to an S-Corp.
We will also help you setup, or make an S-Election, in order to convert to an S-Corp.
Once you've become an S-Corporation, we'll also handle all the bookkeeping, tax payments, 1120s tax returns and more, so that your S-Corp runs smooth.
It's usually a good idea for a small business owner to take a look at an S-Corp to see if it will help them reduce taxes, particularly reduce their medicare and social security self employment taxes.
An S-Corp, or S-Corporation, is a type of business structure that allows for pass-through taxation, meaning that the profits and losses of the business are passed through to the individual shareholders to report on their personal tax returns. You can learn more about an S-Corp Here, Here and Here.
One of the main benefits of an S-Corp is the pass-through taxation, which allows for potentially lower overall taxes compared to other business structures. S-Corps also offer limited liability protection for shareholders, meaning that their personal assets are generally protected from business debts and liabilities. Additionally, S-Corps may have an easier time raising capital and transferring ownership compared to other business structures.
Eager to work with a CPA focused on reducing taxes and boosting profits? Begin with a complimentary strategy call, where we'll explore ways to enhance value.
