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.
Don't Just Set up an S-Corp, Maximize Its Potential
✔ 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
Explore 100+ integrations that make your day-to-day workflow more efficient and familiar. Plus, our extensive developer tools.
HOW IT WORKS
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.
S-Corp Case Study
