ARE YOU A BUSINESS OWNER WHO WANTS TO PAY LESS TAX?
Many self-employed, sole proprietorship business clients have come to me over the years and asked the same question: "Would I save more money if I incorporated?" In most situations, the answer is YES.
I've heard many other accountants and CPAs say that changing from a sole proprietorship business to an S-Corporation would provide no benefit, the business would just be a different entity but the income and expenses would be the same. This simply is not true.
That is why I made this sheet for both my current and prospective sole proprietorship business clients. The above sheet depicts a regular sole proprietorship business client that I took and prepared the same return as an S-corporation for tax purposes. The client had the same income and general expenses. However, a client with an S-corporation gets many benefits that most accountants and CPAs do not realize. These come in the form of:
1) over $10,000 in tax-free fringe benefits,
2) over $10,000 in non-taxable reimbursements, and
3) over $10,000 in non-taxable income.
Thanks to these tax saving strategies, a $100,000 gross income sole proprietorship business client could save over $12,000 in taxes when they incorporate and file as an S-corporation instead!
Additional S-corporation benefit: an IRS audit rate which is 12 times lower than the audit rate of sole proprietorship businesses.
Does your accountant do this for you? Do you need to open a new door? I am offering a FREE 1 hour consultation to business owners, to discuss these tax saving strategies.
Paying less tax is exactly the same as earning more money.
Schedule your free consultation today at www.nytaxstrategies.com!