Is it worth it?We run your profit, salary and state costs side by side before anything is filed.
- Self-employment tax today vs payroll tax as an S corp
- Payroll, bookkeeping and extra return costs
- State entity taxes where you operate
Keep more of what your business makes.
Tax planning, tax preparation and bookkeeping for small business owners, from one team that sees the whole picture all year.
Tax planningTax preparationBookkeeping
S corp electionExample
Net business profit$180,000
Self-employment tax as a sole prop$25,433
Payroll tax on an $80,000 salary$12,240
Less in payroll taxes$13,193
Before payroll costs, the extra return and any state entity tax. Run your own numbers.
Three services, one team.
Most owners juggle a bookkeeper, a tax preparer and nobody planning. We do all three, so nothing falls between them.
Tax planning
A plan for the whole year
Entity structure, S corp salary, retirement plans, the Augusta rule and every deduction you qualify for, planned through the year.
See the strategies Tax preparationEvery return, done together
Business and owner returns prepared side by side, so K-1s, salaries and deductions all agree.
See what we file BookkeepingBooks you can plan with
Monthly bookkeeping and reconciliations, so planning and estimates run on real numbers, not guesses.
See bookkeepingSame profit, different setup, very different tax.
Entity structure analysis.
We compare each structure on your actual numbers: profit, salary, state, partners, and plans to raise money or sell. Hover or tap a column.
| Question | Sole propSchedule C | LLCDefault tax treatment | S corpCorporation or LLC that electsMost asked about | C corpForm 1120 |
|---|---|---|---|---|
| How profit is taxed | On your personal return | On your personal return (or the partners’) | Passes through to owners on K-1s | 21% inside the company, again when paid out as dividends |
| Self-employment tax | 15.3% on nearly all profit | 15.3% on nearly all profit | Only on the salary you pay yourself | Only on salary |
| Payroll required | No | No | Yes, a reasonable salary | Yes, for owners who work in it |
| Separate return | No | Single-member no, multi-member Form 1065 | Form 1120-S | Form 1120 |
| State entity taxes | Usually none | Varies by state, some charge annual fees | Some states tax S corps directly | State corporate income tax |
| Usually fits when | Just starting, small profit | You want liability protection without changing tax | Profit is well above a reasonable salary | Raising venture money or keeping profit in the company |
General rules for illustration, not advice for your situation. Liability protection comes from the legal entity; tax treatment comes from how it files. Read: S corp vs LLC
S corp election, start to finish.
We handle the decision, the paperwork and the follow-through, so the savings are real and the IRS is satisfied.
Set a reasonable salaryToo low invites the IRS. Too high wastes the savings.
- Benchmarked to what your role would pay
- Documented, in case anyone asks
- Revisited as profit grows
File Form 2553Due 2 months and 15 days into the tax year you want it to start: March 15 for a calendar year.
- Prepared and filed for you
- Late-election relief when a deadline was missed
- State recognition confirmed
Get payroll runningOwners of an S corp are employees of it.
- Salary and withholding set with your payroll provider
- Health insurance and retirement handled correctly
- Distributions kept separate from pay
File the 1120-SDue March 15, with a K-1 for every owner.
- Federal 1120-S and the state return
- K-1s that flow straight into your personal return
- Both returns prepared together
Tax planning strategies.
The moves we look at with every business owner, every year, and put in place when they fit.
20%
Qualified business income deduction
Many pass-through owners can deduct up to 20% of qualified business income. Salary, entity choice and income level all change how much you get, so we plan for it.
401(k)
Retirement optimization
Solo 401(k), SEP-IRA, or a cash balance plan for high earners: often the biggest deduction an owner has.
14
The Augusta rule
Rent your home to your business for up to 14 days a year for real meetings. The business deducts it, and you do not pay tax on the rent.
PTE tax elections
Many states let S corps and partnerships pay state income tax at the business level. It helps higher earners who are still limited by the SALT cap, often to $10,000.
Accountable plan
Reimburse yourself tax-free for home office, phone and mileage through the business, with the paperwork to back it up.
Quarterly estimates
Amounts based on what the business is actually earning, so there is no penalty and no surprise.
Hiring family members
Paying your children or spouse for real work can move income to lower brackets, when it is done by the rules.
Equipment, vehicles & health costs
When to buy and how to write it off under Section 179, plus the self-employed health insurance deduction and HSAs.
Selling or winding down
How a sale is structured decides whether it is taxed as ordinary income or capital gain. Plan it before you sign.
Bookkeeping, built for tax.
We offer bookkeeping for our business clients. Clean monthly books make every planning move and every estimate more accurate, and filing season stops being a scramble.
- Monthly bookkeepingTransactions categorized and every bank and card account reconciled, each month
- Monthly statementsA profit and loss statement and balance sheet you can actually read
- Catch-up and clean-upBehind on your books? We bring them current before planning starts
- Planning on real numbersQuarterly estimates, S corp salary and year-end moves use your actual results
- A clean year-end closeBooks ready for your return, with nothing to rebuild in March
October closeExample
Transactions categorized214 of 214
DoneAccounts reconciledChecking, savings, credit card
DoneP&L and balance sheetSent to you
SentQ4 estimateUpdated from actual profit
UpdatedThe business tax year.
Deadlines for calendar-year businesses and their owners.
Jan
- Jan 15Q4 estimated payment
- Jan 31W-2s to employees and 1099-NECs to contractors
Feb
- FebruaryBooks closed for the year
Mar
- Mar 15S corp (1120-S) and partnership (1065) returns due, with K-1s
- Mar 15Last day to elect S corp status for this year
Apr
- Apr 15Personal, Schedule C and C corp returns due
- Apr 15Q1 estimates and many state entity taxes
May
- MayMid-year profit check against the plan
Jun
- Jun 15Q2 estimated payment
Jul
- JulyRevisit salary and distributions
Aug
- AugustPlan equipment purchases and retirement contributions
Sep
- Sep 15Extended 1120-S and 1065 returns due, Q3 estimate
Oct
- Oct 15Extended personal and C corp returns due
Nov
- NovemberYear-end projection and planning call
Dec
- Dec 31Last day to buy equipment, set up a Solo 401(k) and run year-end payroll
Tax preparation, done together.
We prepare the business return and every owner’s personal return together, so the K-1s, salaries and deductions all agree.
- Schedule CSole proprietors, single-member LLCs and freelancers
- Form 1120-SS corporations, with a K-1 for every owner
- Form 1065Partnerships and multi-member LLCs
- Form 1120C corporations
- Form 2553S corp elections, including late-election relief
- State returnsBusiness and owner returns in the states where you operate
Run the numbers.
See what an election could be worth before you book a call.
Owners ask us.
Do you do bookkeeping?
Yes. We offer bookkeeping for our business clients. When we keep your books, your tax planning, quarterly estimates and return all run on the same numbers. If you already have a bookkeeper or payroll provider you like, we can work with them instead.
When does an S corp election make sense?
Usually when profit is comfortably above what you would pay yourself as a reasonable salary, so the payroll-tax savings outweigh payroll costs, the extra return and any state entity tax. We run your numbers before you decide.
What is the Augusta rule?
Under Section 280A(g), you can rent your home to your business for up to 14 days a year, for real business use such as meetings, and the rent is not taxable income to you. The business can deduct it if the rent is fair market value and documented. We help set it up properly.
Can my LLC be an S corp?
Yes. An LLC can elect to be taxed as an S corp by filing Form 2553. It stays an LLC legally, with the same liability protection.
I missed the March 15 deadline. Is it too late?
Often not. The IRS grants late-election relief in many cases when there is reasonable cause. We prepare the request with your election.
Let’s look at your business.
Bring last year’s return and a rough profit number for this year. We will tell you whether your setup is costing you, and what planning, prep and bookkeeping would look like.