7 min
How Do I Use the S Corp Strategy? Keep What You Earn
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- Entrepreneurship
All too often, I come across business owners who have their S Corp set up but they don't understand why or how to actually use it to their advantage. It's super common for accountants to file the paperwork without explaining your new responsibilities or the new strategies that come with being an S Corp owner.
The main way that the S Corporation saves you money is by decreasing the amount of self-employment tax you have to pay. You effectively separate yourself from the business and become an employee so that you only have to pay employment taxes on the portion of income you take in salary.
However, often missed are the ways that an S Corp can indirectly save you money. You can leverage accountable plans and the Augusta rule. These are tax-free transfers of money that keep cash in your control.
* Related episodes:
196: How to Handle Suspicious Tax Pros
201: How to Deduct Medical Costs and Self-Employed Health Insurance
208: Live Q&A: How Much Money Am I Actually Making in My Business?
* Find everything you need at www.keepwhatyouearn.com! https://www.keepwhatyouearn.com/
* Questions about this episode? Text me!: https://my.community.com/shannonweinsteincpa
* Chat about this episode in the Keep What You Earn Community – http://keepwhatyouearn.circle.so
* Hire us: https://www.fitnancialsolutions.com/accounting
* See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator
* Find me on IG @shannonkweinstein
* Meet me face-to-face on YouTube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ
* Featured in Yahoo Finance! Read more here: https://finance.yahoo.com/news/10-bookkeepers-accountants-watch-2021-113800161.html
The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
All too often, I come across business owners who have their S Corp set up but they don't understand why or how to actually use it to their advantage. It's super common for accountants to file the paperwork without explaining your new responsibilities or the new strategies that come with being an S Corp owner.
The main way that the S Corporation saves you money is by decreasing the amount of self-employment tax you have to pay. You effectively separate yourself from the business and become an employee so that you only have to pay employment taxes on the portion of income you take in salary.
However, often missed are the ways that an S Corp can indirectly save you money. You can leverage accountable plans and the Augusta rule. These are tax-free transfers of money that keep cash in your control.
* Related episodes:
196: How to Handle Suspicious Tax Pros
201: How to Deduct Medical Costs and Self-Employed Health Insurance
208: Live Q&A: How Much Money Am I Actually Making in My Business?
* Find everything you need at www.keepwhatyouearn.com! https://www.keepwhatyouearn.com/
* Questions about this episode? Text me!: https://my.community.com/shannonweinsteincpa
* Chat about this episode in the Keep What You Earn Community – http://keepwhatyouearn.circle.so
* Hire us: https://www.fitnancialsolutions.com/accounting
* See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator
* Find me on IG @shannonkweinstein
* Meet me face-to-face on YouTube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ
* Featured in Yahoo Finance! Read more here: https://finance.yahoo.com/news/10-bookkeepers-accountants-watch-2021-113800161.html
The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
7 min