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Tax Planning That Happens Before December
The biggest tax savings come from decisions made during the year: how your business is taxed, what you pay yourself, and when you invest. We help you make them on time.
Choosing How Your Business Is Taxed
An LLC can be taxed as a sole proprietorship, a partnership, or an S corporation. For many owners with steady profit, an S corporation election lowers self-employment tax, because payroll taxes apply to a reasonable salary rather than all of the profit. It also adds payroll, a separate return, and state costs. Our S Corp Analysis analysis runs the numbers for your business and gives you a clear answer.
An example. If your business earns $150,000 in profit and a reasonable salary for your role is $85,000, an S corporation applies payroll taxes to the $85,000 salary rather than the full $150,000. Income tax still applies to all of it.
Year-Round Planning
- Quarterly projections, so your estimated payments match reality and April holds no surprises.
- Owner compensation documented and reviewed each year.
- Equipment and vehicle purchases timed and structured with the tax effect in view.
- Pass-through entity tax elections, available in many states, analyzed each year.
Tax Planning and Entity Choice Questions
When Is the S Corporation Election Due?
Generally within two months and 15 days after the start of the tax year it should apply to. Late-election relief is often available under Revenue Procedure 2013-30, and we'll tell you whether you qualify.
At What Profit Does an S Corp Make Sense?
It depends on your state and the salary your role requires. The break-even point is often somewhere above $60,000 to $80,000 in steady profit, but an S Corp Analysis gives you the actual answer.
Is a Planning Session Available Without a Package?
Yes. Tax Planning Session is a one-time projection and planning session for $500.
Make Your Next Tax Decision Ahead of Time
Answer three quick questions, then pick a time for a free 20-minute discovery call.