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re: S-Corp Election
Posted on 1/25/13 at 10:57 am to ColdDuck
Posted on 1/25/13 at 10:57 am to ColdDuck
S-corp accounting work will cost you a little bit more since you have to file a separate 1120S return. No state problems since LA gives you an s-corp exclusion. It all flows to your personal income tax return.
1
Posted on 1/25/13 at 12:01 pm to LSUchuck
Say my "profit" is 110K. I then pay myself 100K and keep 10K in the business. I currently take that 100K and transfer money to my personal account once a month. I then have to pay regular Fed taxes and the 15% FICA on the whole amount (110K minus personal exemtpions, etc). If I do an S-Corp election, then I can "pay" myself 50K (with W2) and take a distribution of 50K. Then I only have to pay the FICA part on the first 50K and regular fed on the remaining 60K. So that $9000 savings is well worth the extra couple hundred bucks to my accountant. Am I missing something?
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