You've built a profitable business, and you're still handing more of it to the IRS than you need to. The real reason usually traces back to your structure.
In this episode of CEO Numbers Network, I'm continuing our mid-year tax check-in series with a deep dive into business structure. Profitable business owners often keep paying self-employment tax long after their structure has stopped making sense. I break down the three signs that tell you you're ready for an S corp and the reasonable compensation rule the IRS requires once you make that switch. I also share a client story about what it actually took to get her ready, because the profit number alone wasn't enough.
You will learn the three signs that tell you you're ready for an S corp, plus the reasonable compensation rule the IRS enforces once you make the switch.
If you have ever wondered why your CPA never brought up an S corp, or worried you might be underpaying yourself the wrong way, this episode shows you exactly where to look.
👉 Discover how our tax team can help you know if you're ready for an S corp: here
Key Takeaways
00:00 The cost of delaying decisions
1:54 Why self-employment tax costs more
3:19 How S Corp changes taxes
5:02 The $75,000 net profit benchmark
6:40 Why finances must stay separate
7:53 The reasonable compensation rule
Resources
📥 Download our free mid-year tax check-in checklist: here
📈 Book a strategy call with Danielle's team at Kickstart: here
👉 Check your books here
👉 Visit the Kickstart website
👉 Follow us on Instagram
Listen Next
👉 Why Your Tax Bill Keeps Growing (Even When You Pay On Time)
👉 Your CPA Did Everything Right, and It's Still Costing You
