S Corp vs. LLC

Talking to my accountant recently, I discovered that forming an S Corporation for my business would save me about 15% on taxes. Here's why:

I would actually pay myself a "reasonable" salary out of the income from my business, creating an expense for the business, which is deducted from the taxable income of the S corp. LLC's are taxed as a self-employment tax.

I would be able to split my FICA, Social Security, and other contributions with the S corp, creating a tax advantage.

Any additional income from the S corp can be paid out in dividends to stockholders, mainly myself, which are taxed at a lower rate then income.

Now, I am no tax expert, but it might be something to look into for your business, and of course, talk to your tax professional about.

I don't know about you, but the more money I am able to keep, the harder I work!