Do you NEED an S Corp?!

You might!

Have you ever wondered what an S Corp actually does for you?

2) First, Self-Employment Tax (“SE Tax”)

If you are self employed - entity or not - and have no other sources of income, you will be taxed 15.3% of your profits to $137,700 of profit and 2.9% profits after $137,700.

It approximates payroll tax.
3) For example, let's say your business profits $150k, either as a sole proprietor or single member LLC.

In this example your SE Tax would be approx. $21,425.

Here’s how having a S Corp could save you tax...
In this example, let's say that a business like yours would pay a manager like you $50k in a salary.

In an S Corp you can pay yourself a reasonable salary shifting profit to salary, BUT only the salary would have SE Tax, not any of the profit.
No S Corp:

-$150k profit in the business and
-$21,245 SE Tax

With S Corp:
- $7,650 of SE Tax on your $50k salary and
-the remaining $100k of profit has $0 SE Tax.

Thus, the S Corp saves $13k+ SE tax...
The key is to pay yourself a reasonable salary that you can document.

Doing this is both a science and an art, but should save you tax, especially in certain types of business.
So how do you "get" an S Corp.

You really don't. You just file a form to have your current entity (LLC or Corporation, usually), to be taxed as an S Corp.

An S Corp is not a legal entity, but a tax election.
This election is made by filing a Form 2553.

What isn’t easy is keeping up with all the S Corp rules to make sure you keep your election.

I definitely recommend having a CPA if you want to make an maintain an S election.
Please like or RT to save and build our tax-saving community.

If learning how to save this $13k was helpful to you, think of all the other ways you could learn to save tax from my guide containing 60 more THREADS in 121 pages on topics like this.
Buy it TODAY before the price goes up!

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20 Jan
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This might be it.

If you think you make too much income to contribute to a ROTH IRA, you might be right.

It just doesn’t matter...

There’s another way to get that tax-free goodness.

2) A ROTH Conversion

Some people all it a "backdoor ROTH," but let’s not! It sounds wrong and a ROTH conversion is soooo NOT WRONG.

There is no income limit on converting a traditional IRA to a ROTH IRA.
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Two transactions at the same time: one generates a tax DEDUCTION and one generates TAX-FREE INCOME.

This might be my second favorite thread I’ve ever written!

Let’s bounce this ***THREAD**** to all of our friends via like/RT!!
1) First, the DEDUCTION:

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I'm going to address the tax aspect directly.
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You’ve seen him tweet about it.

Have you ever wondered how he does it?

…or maybe if you could, too?


First Hurdle – Citizenship Country

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Lawrence is a UK citizen, a Uruguay resident, and a “nonresident” for UK tax.

The UK only taxes income earned in the UK for nonresidents.
First Hurdle – Citizenship Country

As long as @lawrencekingyo stays out of the UK for all but 46 days a year, he should keep his UK tax nonresident status and not owe any income tax on any income he earns outside of the UK (presumably all of his income).

Hurdle cleared!
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Someone that will not only do a nice job on filing your taxes, but will find you all the LOOPHOLES.

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Visit some websites and get a feel.
Pick a few that you think you want to work with and call them.

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