Welcome back to another episode of The Funny Money Show! To start, we want to introduce to the show’s fill-in host, Colleen Lotz (okay gig is up, that’s me, yes I write these show notes and produce this show!!) I have to admit, I will offer you zero financial advice, I actually need the help more than anyone! But, I do know how to format a show, ask the right questions, and have some fun! A little background on me so you know who you’re listening to…I worked full time for Fox Sports as a feature and live event Producer. I have won 4 Emmys and have been nominated for countless (can’t win them all although I should have…..) In 2018 my family moved to Indianapolis where I’m from and I still continue to work for Fox Sports as a freelance producer. I work closely with teams like the St. Louis Cardinals, the Kansas City Royals, the Indiana Pacers, the St. Louis Blues and more! Along with working for Fox, I also do content marketing for small businesses and am creating a Podcast business! I can do it all so please feel free to contact me if you or your business is looking to launch a podcast…I’ll do it all for you and more! You can reach me at firstname.lastname@example.org.
Okay, back to the reason you’re reading this! Let’s talk about choosing an S-Corp! You start a business, which is an LLC, but will that be a single member or S-Corp status? Who the heck knows and why is that even important?? Well…it actually is pretty vital to know and there are perks to electing S-Corp status.
Thanks for coming back to continue reading this well-written document all about the exciting election of S-Corp. Alright, let’s break down why you should make this specific election and how it can benefit you and your business:
WHEN YOU CHOOSE S-CORP:
– MUST pay yourself a reasonable salary. I repeat, you are REQUIRED to take a salary
– You MUST elect S-Corp status right away…you cannot start your business then 6 months in decide you want to choose S-Corp, that’s just going to piss off the IRS and quite frankly you just can’t do it
– You have to think—is this going to flow through your personal return and all the money you make will be taxed at an ordinary income rate OR do you think you will make enough money that a portion can be taxed at a different rate—some food for thought!
PERKS OF S-CORP
– I mean I personally think taking a reasonable salary is a perk, but what do I really know….
– You will pay less in taxes
– You will have a W-2 salary still and your dividends will be taxed at a lower rate…this gives you a bit of relief
** Quick note: If you think your business will experience a loss in years 1-3, DO NOT elect S-Corp. It’s just going to mess it all up!
Do you need a refresher on entities overall? Check out our last episode HERE
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