In this episode of the Main Street Business Podcast, Mark J. Kohler and Mat Sorensen share powerful insights on why converting your LLC to an S corporation is a game-changer for tax savings. They discuss the crucial tax advantages, the importance of structuring income properly, and walk you through the filing process. Find out how you could potentially save $7,000 or more with this strategic business move.
Here are some of the highlights:
- Mark emphasizes how LLCs do not save taxes and explains the process of turning an LLC into an S corp.
- Discussion on the difference in tax rates between LLCs and S corps, with S corps allowing for lower self-employment tax.
- Mat and Mark cover the importance of allocating income to FICA wages and the potential savings.
- Mark outlines the three-step process for making a late S corporation election, including filling out form 2553 and referencing revenue procedure 2013-30.
- Mark explains the workaround for the first year, including claiming compensation on both the 1120s and Schedule C.
- The benefits of the S corporation strategy for business owners and the potential annual savings.
- Need for proper health insurance premium write-offs and the overall benefits of the S corporation strategy.
- Why S Corps should avoid taking the Qualified Business Income (QBI) deduction when filing taxes.
- Grab my FREE Ultimate Tax Strategy Guide HERE!
- Are you ready to get certified in EVERY strategy I teach? Start your journey with a FREE 15-minute demo to explore the Main Street Tax Pro Certification.
- You don't want to miss this! Secure your tickets for the most significant tax & legal event of the year: Tax and Legal 360
- Looking to connect with a rock star law firm? KKOS is only a click away!
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