Should I Become an S Corp?

Why become an S Corp?

One reason to become an S Corp is that you don’t have to pay self-employment tax which is 15.3% of your profits for the year as an LLC. When you’re an S Corp you pay Payroll tax and instead of taxing 15.3% on all of your profit for the year, you only get taxed on 15.3% of your reasonable comp salary.

Have a bookkeeper

If you’re switching to be an S Corp having a bookkeeper is smart. Things change and every time you get paid through payroll it affects all the different accounts on your Profit & Loss. Bottom line: You want things documented and to know your numbers in order to know if it is time to be an S Corp.