042: Understanding S-Corp Reasonable Compensation
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Whether you’re earning $5,000 a month in sales or $1,000 a month in sales up to seven figures in sales, we highly suggest you take the time to listen to this episode and understand some things you need to know about an S-Corp – because, ultimately, you’re going to want this information, especially when we’re talking about tax savings.
The amount of tax savings you can have by being an S-Corp can be very substantial. Even if you’re not really ready for one now, you want to make sure that you understand it so you can pull the trigger at any point you’re ready.
Now, there’s a misconception going around that just because an S-Corp can save you on taxes, you can just simply switch to S-Corp right away and do it by yourself. Well, it doesn’t work that way – unless you’re willing to spend thousands and thousands of dollars, which only defeats your purpose of saving on taxes.
In this episode, you will hear:
- Things to consider to make an S-Corp work
- How much you could save on self-employment taxes
- Understanding reasonable compensation
- 3 approaches to getting to your reasonable compensation number
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