If your business is organized as a sole proprietorship or as a wholly-owned limited liability company (LLC), you’re subject to both income tax and self-employment tax. There may be a way to cut your tax bill by conducting business as an S corporation. Fundamentals of self-employment tax The self-employment tax is imposed on 92.35% of
Tag: self employment taxes
The Tax Benefits of S Corporation Status
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Electing S corporation status continues to be a popular entity choice, combining the liability protection of a corporation with many of the tax benefits of a partnership.