• Home
  • About You
  • About Us
    • Our Services
    • Our People
  • Our Clients
  • Jobs
  • Resources
  • Blog
  • Contact
Accountability Services
Tel: 206.522.0110

Can You Save Tax Dollars by Changing to an S-Corp?

2/1/2013

 
Decide if the switch is right for you


If you are an established sole-proprietorship or single-member LLC, there may a compelling reason to consider becoming an S-Corp.  In many instances, when you have reached a net profit of $100,000 (after expenses, but not including owner draws), you can save thousands of tax dollars per year by electing to become an S-Corp.  If you're interested in pursuing this tax strategy this year, you need to make the election by March 15.    

Here's an example of how it can work.   

Case Study:  Consultant earned $135,000 gross revenue.  Our client asked us to "show him the money."  After expenses, the tax treatment results are as follows.

As you can see, this client saved over $6,000 in tax.  Even after the hidden costs (extra tax return, State fees, additional accounting), he could clearly justify making the switch to S-Corporation taxation.

Picture

Comments are closed.

    Accountability Services

    Welcome to The Bottom Line, an online newsletter from Accountability Services. As clients, friends and colleagues, we are excited to share with you financial updates, tips, company news, and opportunities in each issue of The Bottom Line. 

    Archives

    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    May 2018
    January 2018
    December 2017
    November 2017
    October 2017
    July 2017
    June 2017
    January 2017
    December 2016
    November 2016
    October 2016
    July 2016
    June 2016
    May 2016
    March 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    September 2011
    March 2011
    September 2010
    August 2010
    December 2009
    September 2009
    May 2009
    February 2009
    January 2009
    September 2008
    May 2008
    March 2008

    RSS Feed

© 2000-2019 Accountability Services PLLC  Privacy Policy
Website by Pretty Smart Design