Wondering if S Corp is right for your business? Introducing...
The S Corp ToolboxI need this! How much?
2023 S Corp Election Deadline is...
March 15th, 2023
The internet is abuzz with rumors that the best way to save on taxes is to become an S Corp. How do you know if it is right for YOU?
First, let’s do some myth-busting, shall we?
- Rumor: Being an S Corp will always save you money on taxes.
- Truth: Some businesses will actually pay less in taxes as a sole proprietorship/LLC, whereas some will have substantial savings. S Corp is NOT a one-size-fits-all tax-saving strategy.
- Rumor: It’s easy to calculate your potential tax savings as an S Corp.
- Truth: The calculation is actually quite complicated, especially after the Qualified Business Income deduction was introduced in 2018. Before 2019, a “back-of-the-envelope” comparison might be useful, but these days a more specific calculation is needed to get an accurate picture of the cost savings.
- Rumor: I don’t have to pay payroll taxes as an S Corp.
- Truth: S Corp owners have to pay payroll taxes on their “reasonable salary”, which is required. You must have adequate documentation of how you came up with your reasonable compensation.
- Rumor: Being an S Corp isn’t worth it due to all the extra rules and regulations.
- Truth: While there is some extra cost of compliance that should be considered, an S Corp isn’t overly difficult to maintain if you are aware of the rules, and can possibly save you big money.
- Rumor: I need to pay someone big bucks to help me determine if an S Corp is right for me and to make the election for my business.
- Truth: With the right tools, you can do this yourself and save TONS on unnecessary accounting and legal fees. While we always suggest a professional file your taxes, a lot of the rest can be done on your own!
How does an S Corp Save you Money?
Electing to be taxed as an S Corp can save you money because a portion of your profit is taxed as a dividend and NOT as earned income. This means you save 15.3% on that portion of income (though you will still have income taxes on both portions).
Unfortunately, unless you don’t actively work in your business, you won’t be able to justify taking 100% of your profit as a dividend. You’ll instead need to pay yourself a reasonable salary as an employee of your business. You will have to pay payroll taxes on that portion of your income.
Determining how much of your income should be salary and how much should be a dividend is complicated, and something the IRS is starting to spend more time reviewing.
Also, while S Corps may save you on federal payroll taxes, you also want to consider the additional compliance costs associated with being an S Corp (like running payroll, filing an extra tax return, etc.).
Want help with all this? You’re in the right place!
The S Corp Toolbox!
I’ve created all the resources YOU need to understand how S Corps work, determine your IRS-defensible reasonable salary, accurately calculate your tax savings, elect S Corp status yourself, start running your first payroll, AND help you stay in good graces with Uncle Sam.
It’s an amazing resource for those who are considering becoming an S Corp but want to understand their true tax savings and go in eyes wide open.
It’s also perfect for those who have already elected to be taxed as an S Corp but want to make sure to stay in compliance.
As a CPA and Financial Literacy Coach, S Corps are one of the most common topics I am asked about by business owners looking to save money on taxes. So, I created this resource just for YOU!
Get Started Today
So, what does it include??
Literally everything but the kitchen sink!
>> Two video training modules:
- Entity Types. This training helps you fully understand what an S Corp is and how it differs from other entity types.
- All About S Corps. we’ll dive deeper into just S Corps and explain the requirements, etc. for maintaining one.
>> S Corp Checklist:
Keep all the requirements and steps straight when becoming an S Corp.
We’ve created an easy-to-follow checklist that includes links to all the resources you will need to both set up your S Corp and stay in compliance. You won’t know what you would’ve done without it!
The S Corp Checklist will also show you how to utilize the other resources within the Toolbox.
>> S Corp Vs. LLC Decision Guide:
This handy reference guide will help you understand the detailed advantages and disadvantages of each entity type and help you decide which may be best for you.
>> S Corp vs. LLC Calculator & Selector:
We walk you through a detailed and accurate calculator that can estimate your total tax liability and savings and compare entity types.
No more inaccurate back-of-the-envelope calculations, I’ve simplified a detailed calculator that accountants use so that you can do your own scenario calculations quickly and easily! This calculator even takes into account the Qualified Business Income Deduction (most other calculators available do NOT).
>> How to Elect to Be Taxed as an S Corp:
Let’s get tactical! How can you actually make this election?
Filing an S Corp election can be intimidating if you’ve never done it, so we walk you through how to do it correctly and for FREE.
>> Reasonable Compensation Calculator:
You can use this calculator to estimate your reasonable compensation!
This calculator is available in both Excel and Google Sheets versions and is SUPER easy to use! Estimating your reasonable salary is key to being able to accurately calculate your S Corp tax savings.
>> Payroll Guide for S Corp Owners:
For new S Corps, setting up and running payroll for the first time can be intimidating. Our Payroll Guide tells you everything you need to know to get payroll set up and running quickly, as well as requirements like worker’s comp and unemployment insurance.
Plus, we help you determine what the right software is for you!
How much, you ask?
A simple consult with an accountant can cost you hundreds of dollars an hour, PLUS fees related to estimating tax savings and reasonable compensation. AND if you decide to elect S Corp, you’d pay them more to make the election for you and set up your owner payroll. This can easily add up to $2,000 or more.
With our S Corp Toolbox, you can do ALL of this yourself! Plus, we have included training modules and resources to empower yourself to make the best decisions for your business.
Depending on where you are in your S Corp journey, we have two packages to choose from:
If you work through our S Corp Toolbox and don't love the tools, and resources I share inside...
All you need to do is send us an email at [email protected] within 3 months of purchase, and let us know your feedback so we can help you figure out the next step for you. Your satisfaction is our top priority!
More about the Reasonable Compensation Study and Report:
Because of the anticipated increase in the IRS focus on reasonable salary for S Corps (recently plans were announced to hire 87,000 more IRS agents), we have partnered with RC Reports to provide these super valuable reports to you, along with our full S Corp Toolbox.
About the Report:
- The report is fully custom using answers you provide via an online survey of your job duties.
- It is perfect for those who wear “many hats” in their business, such as sales, marketing, back-office, Manager, HR, admin, etc.
- Using your answers and business location, data will be pulled from the most current Bureau of Labor Statistics, Census Bureau, and RC Reports wage database to estimate your reasonable salary
- The report will detail all relevant data used, including charts and graphs showing your job duty and compensation breakdown
- The report results will also be reviewed by a CPA (Jamie Trull), and any recommendations or observations will be sent to the user
- RC Reports has a 100% record of salary calculations being upheld during an audit
- The report will give you peace of mind knowing you won’t have to pay tons of back taxes and fees because of a salary reclassification AND that you aren’t paying more in taxes than you need to!
Just need the Study & Report? No problem. Click here and get it today for only $400.
S Corp Toolbox + Reasonable Compensation Study & Report
Recommended for those who are S Corps or planing to elect as oneGET THE TOOLBOX + YOUR PERSONALIZED REPORT NOW
Why We're Different
Aside from being a much more affordable solution than consulting with your typical accountant, our tools will give you an accurate and totally unbiased recommendation related to your entity type. You can do this in your own time, without having to sit on the phone with an accountant or play email tag.
We know that at times, some (though not all) accountants can advocate for S Corp status earlier than you may really need it, in part because they can profit off of the extra filing and compliance fees you’ll pay them. Additionally, some accountants will give extremely high estimates of how much an S Corp is saving you, when in fact the true savings may be lower when all factors are considered. As our company does not provide 1:1 accounting or tax filing services, we have nothing to gain from making an S Corp recommendation to a company that may not be quite ready.
You can trust us to have your best interest at heart!
Hey there, I'm Jamie Trull.
Financial Literacy Coach, Hamilton superfan, an enjoyer of a glass of Cabernet with a good mystery book, and — if you like —your guide as you get allll those numbers together.
Even though I’ve got a CPA license and 15 years of experience in finance and accounting, my real passion is explaining complex topics to small business owners and solopreneurs in a non-technical way to make them easy to understand and put into practice.
I’m not one of those accountants that will use a whole bunch of buzzwords and jargon…we won’t be talking about things like “EBITDA” or “synergies” here (UGH). Instead, it’s all explained in words that make actual sense in the real world of entrepreneurship.
In other words, I’m not your father’s CPA.
And my #1 mission is to see more entrepreneurs not just surviving, but THRIVING in both their professional and personal lives.
Frequently Asked Questions
What does Satisfaction Guaranteed mean?
How do I know which option is best for me?
How does the Reasonable Compensation Study and Report work?
What if I buy only the S Corp Toolbox, but later decide I want the RC Study and Report too?
Is this going to be boring and confusing?
How long will this take to complete?
What Tax Year is this Reasonable Compensation Study & Report for?
Does this include the same S Corp Information that Financial Fitness Basics comes with?
What Others Are Saying...
"The clear explanation of LLC and S corp. Gosh -- I wish I knew this when I was advised to do an S corp WAY before it made sense to do it -- I lost money on listening to the 'pros', Ugh!"
"It is super helpful. I wish I had had access to this back in 2009 when I first was trying to navigate this scary process all alone."
"Prior to this, I had been considering changing to an S Corp taxation but I realize that I am not making enough net profit to consider this change."
Choose the Best Next Step for YOUR Business
S Corp Toolbox + Reasonable Compensation Study & Report
BEST VALUE for those who are S Corps or want to elect as oneBUY NOW
Reasonable Compensation Study & Report Only
Don't want the S Corp Toolbox? Get just the Reasonable Compensation Study & Report today! It includes:BUY NOW