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From Lesson 8
LLC or S-corp? How to think about your business structure
Your entity choice depends on your profit, a reasonable salary for your role, and the added cost of payroll and filings. There's no one right answer from a podcast. Run your own numbers with your CPA before you elect anything, and revisit it as your profit changes.
Questions to ask your CPA
- At my profit, does an S-corp election make sense after payroll costs?
- What's a reasonable salary for my role, and how do we support it?
- What extra filings and deadlines come with this?
- When should we look at this again?
These are my opinions, not gospel. Take this to a CPA who cares about you.
Education, not tax or legal advice. Talk with a CPA about your own situation.
Brain Bites on this
Should my LLC elect S-corp status?
It depends on three numbers, not on what a podcast said.
Source: IRS: S corporation compensation and medical insurance issues