The "Reasonable Salary" Trap: S-Corp Compliance in 2026 скачать в хорошем качестве

The "Reasonable Salary" Trap: S-Corp Compliance in 2026

Are you still operating as a Sole Proprietor? If your business is netting over $50,000–$75,000, you might be "donating" thousands of dollars to the IRS every year in unnecessary self-employment taxes. In this video, Chris Lee, CPA explains the "Golden Threshold" of when to move from a Sole Proprietorship to an S-Corp. We’ve spent the last few weeks talking about selling your business and investing the proceeds, but today we’re focused on the cash flow you have right now. By switching to an S-Corp, you can split your income between a "Reasonable Salary" (taxed for Social Security and Medicare) and "Distributions" (not taxed for Social Security and Medicare). Scale Your Business, Not Your Tax Bill Transitioning to an S-Corp is more than just a filing; it’s a change in how you run your life. If you’re ready to graduate from "Self-Employed" to "Business Owner," let's get your structure right. Book your 1-on-1 Entity Strategy Session here: ttps://calendly.com/chris-lee-cpa #scorporation #soleproprietor #taxsavings #smallbusinesstips #cpaadvice #obbba #payrolltax