S-Corp Entity Formation
Frequently Asked Questions
Q: Is an S-Corp the right entity type for me?
A: Will your business make active (not passive) income? Is your business projected to net $40-$50k per year? If yes, an S-Corp makes sense for you!
Q: Will an S-Corp help save me taxes?
A: Yes! S-Corp structure will help you save on Self Employment Tax or FICA. You only pay the SE tax on the amount of salary you take from the S-Corp.
Q: I have a few businesses, should I have multiple S-Corps?
A: Not typically, our attorneys will typically suggest having one S-Corp that will then own your other business or be the partner in your partnership ventures.
Q: What is the purpose of Officers and Directors?
A: Officers (President, Secretary & Treasurer) run the day-to-day tasks for the Company. The Board of Directors will make the decisions for the Company. These positions can all be one person if you like.
Articles & Other Videos
Maintaining Your S-Corporation
I wish that it was as easy as just filing a form with the State and you have magical tax savings and bullet-proof asset protection, but that’s simply not the case. Operating your business in the S-Corporation format can provide some amazing benefits, but if we don’t take care of the basics it could cause a lot of unexpected problems.