Archives for s corp

Converting an Unincorporated Business Into an S Corp

The federal self-employment (SE) tax which includes mainly FICA (Social Security tax) and Medicare just keeps going higher and higher. If you’ve reached the breaking point, there may be a way to reduce those SE taxes by converting your existing unincorporated small business into an S corporation. How to Evaluate the Option If you’re a self-employed individual – meaning a sole proprietor, partner, or LLC member – you have to pay the SE tax on your net SE income. The SE tax has two parts: 1. The 12.4 percent Social Security tax. Social Security tax is due on net SE income up to a certain
Read More

Categories: Newsletter and Updates.