An S-corp provides tax savings over other structures. However, only U.S. citizens and aliens can form one. It limits shareholders to 75.
Whether an S-corp makes sense depends on your situation. Consider income and expenses. Compare tax savings to costs. For lower income, an LLC may be better. If income grows high enough, an S-corp could have more advantages.
Speak to an accountant to analyze specifics. If starting out with uncertain income, wait on filing as an S-corp. Revisit when income increases.
Income Level for S Corp Viability
At what income level is S Corp worth it?
An S-corp may provide tax savings over other structures. However, only U.S. citizens and resident aliens can form one. It also limits shareholders to 75.
Whether an S-corp makes sense depends on your situation. Consider expected income and expenses. Compare possible tax savings to S-corp costs. For lower or uncertain income, an LLC may be better. If income grows high enough, an S-corp could have more advantages.
Speak to an accountant to analyze specifics. If just starting out with uncertain income, wait on filing as an S-corp. Revisit when income increases.
Understanding the 50-50 Rule for S Corp Salary
What is the 50-50 rule for S Corp salary?