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re: Unemployment question concerning LLC taxed as an SCorp

Posted on 5/18/20 at 8:51 pm to
Posted by tigersint
Lafayette
Member since Nov 2012
3549 posts
Posted on 5/18/20 at 8:51 pm to
Thanks for the assistance guys!

I have done some of my research on the ins and outs of how my SCorp election works from a tax saving perspective but with the unemployment now thrown into the equation I was unsure with how this will be reflected.

In short I am able to have some of my income given to me as a dividend (which will save SE Taxes) and the remainder will be given as a reasonable salary for my work done. My CPA should be knowledgeable as to what paperwork will need to be filed and what percentage of this will satisfy the "reasonable amount" stipulation.

My payroll should not be super complex (my business just bring in a check every two weeks based on how many days of work were completed) and my CPA said that they will take care of this for me and it should not add much more to the cost and has been included in my quote for 2020.

My only concerns now have come up with how the payroll and accounting side of this all works to ensure that im not still considered as receiving a salary each week even though my one man company is not bringing in any more money rite now.

I also was kind of wondering what prices can be expected to be paid for these services as mine do seem high but at the same time my CPA also seems to be very knowledgeable on the subject. It would be all good if I were able to work the entire year as this would have indeed saved me money, but unfortunately there comes an amount where the money that goes towards paying your CPA overcomes the amount that you will save in SE taxes and that is what the outlook for this year currently looks like for me.
This post was edited on 5/18/20 at 8:57 pm
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