The #1 Strategy to Save $5,000 or more in Self Employment tax

If you own a small business, you probably operate either as a sole proprietor, or Single Member LLC.
85% of businesses do.
But neither is the best way to structure your business if you’re looking to save on Self Employment tax.
What’s Self employment tax? It’s just a fancy name for the medicare and social security tax you end up paying on April 15th when you own your own business. You also pay this tax if you get paid on a 1099 basis, like many realtors, consultants, and Uber drivers are paid these days.
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Heck, I’ve done returns where the Self Employment tax was higher than the Income tax bill for a small business. In fact, on one return this past April a real estate agent year showed a tax liability of $22,000 in self employment tax–on top of the income tax that was due. She was a new agent, had a tremendous first full year in business, but unfortunately did little to no tax planning. All I could do when I prepared the return was total up the ugly numbers… it was much too late by then to be able to offer pro-active tax advice.
That tax bill that could have been dramatically lowered had the agent obtained some tax coaching back in August or September of last year. Any tax pro worth his or her salt would have helped her learn the advantages of operating as an S Corp.
I did a Facebook live video on this last week. Take a look at the video, see if it makes sense. I think you’ll find it gives a plain-English, straight talk explanation of the S Corp strategy. If you have questions, contact me.
Like any tax strategy, it’s not for everybody, but I’ve used it to help several small business owners save thousands in taxes. You could be one, too.
Watch the video; here’s the link:

For more info on our proactive tax coaching service, including a step by step outline of how to get started,  email me. Or click here to access my calendar and select a convenient time to book a free consult, either by phone, or in person.

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