Today I want to talk to you about one advantage of starting an “s corp” and what doing so will save you on taxes.
S corp is a status you can give yourself and, while I’m not an accountant myself, I can give you some advice on why starting an s corp can benefit you. Before I list this benefit, keep in mind that, assuming you are a full broker, you do need to get a firm license for your s corp. Now let’s move on to discussing the advantage.
Starting an s corp allows you to pay yourself a salary. So everything you make above, say, $40,000, is not liable for taxes in regards to payroll. If you made $100,000 as your bottom line at the end of the year as an independent contractor, you’d be required to pay payroll taxes, which are about 15%. With an s corp, you can avoid this by structuring your salary so that anything you make above a certain point is not subject to payroll taxes.
If you haven’t begun an s corp, I highly recommend speaking to your accountant so that you can save some money on your tax bill.
And if you have any other questions, would like more information, or have ever considered joining my team, feel free to give me a call or send me an email. I look forward to hearing from you soon.