LLC vs S-Corp with Westfront

Are You Maximizing an S-Corp?

We help businesses set up or convert to an S-Corp, and then maximize it's tax reduction opportunity while staying compliant and obeying the law.

Get an S-Corp Analysis


Don't Just Set up an S-Corp, Maximize It's Potential

For most business owners, it makes sense to consider becoming an S-Corp so that you can reduce your self employment taxes and enjoy some other benefits.

S-Corps often help businesses owners lower their social security and medicare taxes while also providing the benefits of an LLC. There are rules and bureaucracy you have to consider when converting to an S-Corp, but we make it easy!

Net Profits are First Subject to Self Employment Tax

First, you need to understand that your net profits will be subject to self employment taxes, and then they will pass-through to your personal tax return, where you'll pay state and federal income tax. S-Corps only help mitigate the self employment taxes, not income taxes.

15.3% Self Employment Taxes

Self employed business owners pay medicare and social security on their net profits. Together, they are often referred as "self-employment tax" or "SE Tax".

12.4% Social Security Taxes

The largest portion of the self employment tax is Social Security Taxes. You'll owe 12.4% social security taxes on your income up to the social security limit. The limit increases each year, but it is $160,200 for 2023.

This tax funds your social security benefits in retirement, so it's important to note how reducing it will affect retirement income.

2.9% Medicare Taxes

All income is subject to medicare tax, and at higher income levels, the tax will actually increase.

State and Federal Income Taxes

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Stay Compliant & Get the Tax Saving Opportunity with Westfront

Should you be an S-Corp? Are you leaving tax savings on the table? Are you compliant and running it properly? Westfront Tax & Accounting will ensure you're getting the most out of your S-Corp.

We'll analyze what proper implementation would be for an S-Corp

We'll help you setup and run an S-Corp, and we can convert your sole proprietorship to an S-Corp for you.

We help S-Corps make the right decision about their reasonable salary, and then provide additional tax reduction strategies.

We'll do your S-Corp taxes at the end of the year.

We do your books & help run the payroll for your business.

Schedule an S-Corp Analysis

S-Corp Case Study

Below is a simple case study to help illustrate the effects an S-Corp might have on social security and medicare taxes.