Unlike sole proprietors or standard LLCs, S-Corps allow you to split income between salary and distributions. This means you can reduce self-employment taxes while staying compliant.
If you’re making $50,000+ per year, switching to an S-Corp may save you thousands in taxes annually — perfect for freelancers, agency owners, consultants, and eCommerce sellers.
S-Corps are required to pay owners a “reasonable salary.” We help you set up payroll, file W-2s, and keep everything compliant with the IRS.
A Limited Liability Company (LLC) is a business entity that combines characteristics of both corporations and partnerships. Specifically, an LLC has the same limited liability protections afforded to corporations and, by default, the LLC is taxed as a partnership.
When someone forms an LLC, they are essentially creating an entity separate from themselves. Should this separate entity (the LLC) be sued, it is the entity, not the individual who created the entity, that is being sued (this is what it means to have limited liability). The advantage to limited liability is that, with few exceptions, should the LLC be sued, the LLC’s assets are at stake, not the individual’s.
A corporation, by default, is first taxed on its net income, then taxed again at a personal level when that net income is distributed to an owner. An LLC, like a partnership, is not taxed. The profits of an LLC are passed to the owners (called members) and taxed as personal income. This is referred to as pass-through taxation and only changes if the LLC elects to be taxed as an S-corporation or C-corporation. Limited liability and pass-through taxation are the two main defining characteristics of the LLC.
We file your S-Corp election with the IRS and make sure your timeline meets IRS approval deadlines.
We prepare and file W-2s for owners and employees, plus 1099s for contractors — IRS-compliant and on time.
We guide you in determining a reasonable salary and help you implement a payroll system.
One-on-one session with our in-house CPA to review your income structure and maximize tax savings.
✔️ S-Corp election (Form 2553)
✔️ IRS filing support
✔️ Business structure consultation
✔️ S-Corp election (Form 2553)
✔️ IRS filing support
✔️ Business structure consultation
Form your S-Corp today with Le Financials — and start keeping more of what you earn
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