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Say YES To Profits, LLC

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Tax Savings Benefit of Becoming An S Corporation Daily Financial Strategy #11 If you're a Single-Member LLC, C Corp, or Sole Proprietor, converting to an S Corp might be a smart money move! Why? 1️⃣ Avoid double taxation by passing profits and losses through to your personal tax return. 2️⃣ Enjoy limited liability protection to safeguard your personal assets. Let's do the math using an annual Net Income of $40,000 If your business generates a minimum of $40,000 in net income, this is a good indicator that you could save on taxes as an S Corporation. How? As a single-member LLC, you have to pay 15.3% in self-employment taxes. That equals $6,120 of the $40,000 net income. By switching to an S Corp and turning that $40K into your salary, you will then pay $0 in self-employment taxes. Your salary also becomes a tax deduction for the business. 🔥🔥 Based on this example, it is possible that you could save $6,000 plus in taxes. Also, as an S Corporation, additional tax-saving strategies are available to you. ⛔⛔ Before making the switch, consult with your accountant for a detailed tax analysis. This post is for informational purposes only. For more tax and financial tips, join my upcoming masterclass at https://buff.ly/4cW4ZLT. #TaxSavings #SCorporation #LLCtoSCorp #TaxStrategy

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