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Cut Employment Taxes With the S Corporation

July 13, 2022

Fed up with paying huge self-employment taxes?

I’ll show you how to slash them when you read my new article.

Enough is enough!

As the owner of an unincorporated small business, you’re probably sick of paying the exorbitant self-employment tax.

And who can blame you? You work hard only to see
the IRS smash and grab a big chunk of your income.

That’s why I urge you to read my new article titled “Cut Employment Taxes With the S Corporation.”

It explains a proven strategy that can cut your tax bill. Perhaps by a huge amount.

The source of the problem.
The onerous self-employment tax.

For 2022, lawmakers levy the self-employment tax at the painfully high rate of 15.3% (on the first $147,000 of your net self-employment income).

  • 12.4% for the Social Security tax component
  • 2.9% for the Medicare tax component

And thanks to your friendly politicians, the more you earn, the more tax you’ll have to pay.

What’s the solution?
Run your business as an S corporation.

If you’re running your business as a sole proprietor, single-member LLC , partnership, or multi-member LLC, you should consider making the switch to an S corporation.

Why?

Because S corporations can follow the tax-smart strategy of paying modest salaries to shareholder-employees.

And at the same time, distributing most or all of the remaining corporate cash-flow to them in the form
of federal-employment tax-free distributions.

Does this sound complicated? Of course it does! We’re talking about tax law.

But don’t worry. I’ll explain all the tremendous tax
advantages
(and some of the disadvantages) of an S
corporation…and in easy-to-use language.

Don’t miss this issue of the Tax Reduction Letter. It’s packed with information that can potentially save you a ton of money. What should be your next step?

CLICK HERE to get my complete article…

“Slash Employment Taxes
With an S Corporation”

Filed Under: Choice of entity, Corporations, Employees, Featured Articles, Self-employment Tax, Tax Policy

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