Save On SE Tax By Switching To S Corp
Many small business owners are missing out on potential self-employment (SE) tax savings and you can see this for yourself by using our tax calculator to the right.
Most business owners start their companies as a sole proprietorship. Typically, this means less paperwork for the business owner, but that they’re also taxed on whatever the company makes (since the business owner and the business are the same entity).
When you switch your business to an S Corporation, you must assign yourself a “reasonable” salary. This means that instead of being taxed on your business’s net income, you’re taxed on dividend earnings and do not need to pay corporate taxes.
Whether you’re currently looking for an accountant or tax support for your business, we encourage you to check our latest information on how small businesses can save by simply electing to be taxed as an S-Corporation rather than a sole proprietorship. Watch our video below or calculate your savings to with our tax form at the right.
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