If you are currently a sole proprietor or in a partnership, you are paying Self Employment Tax. This essentially adds an extra 15.3% tax for FICA to your earnings on top of the regular tax you pay.
As an “S” corporation, you are able to remove some of your income from the Schedule SE and have it flow to you as “regular” income—this can save the extra 15.3% tax. Please see the “Total Tax Comparison” chart to get an idea of what your tax savings could be.
If you take your business more seriously, clients will too. Incorporating helps to make your job into a business. You can’t get rich if you own a job, but you may get rich if you own a company.
We have a free publication about S Corporations we call the “Little Box of Inc” if you’ll provide a snail mail address. Click here to order our Little Box of Inc.™
If you know the S Corporation is for you, please download the Incorporation Order Form, complete it and send it to us. We ’ll incorporate you!