What are the tax benefits of starting an s corp? Let’s discuss this point today.
 

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.

“If you haven’t begun an s corp, I highly recommend speaking to your accountant.”

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.