Maximizing the S Corp Tax Saving Strategy

💰Forming an S Corp can save you money in social security (SS) and Medicare taxes compared to being a sole proprietor.

💡By properly incorporating health insurance premiums and HSA contributions into your payroll, you can increase your tax savings as an S Corp.

💼When forming an S Corp, it's important to determine reasonable compensation for yourself as an employee.

📈The S Corp tax saving strategy can save you 26% in taxes compared to being a sole proprietor.

🔒Consult with a tax professional to ensure you maximize the benefits of the S Corp tax saving strategy.

What is the S Corp tax saving strategy?

—The S Corp tax saving strategy involves forming an S Corp and paying yourself a reasonable salary while also incorporating health insurance premiums and HSA contributions into your payroll. This can result in significant tax savings.

How much can I save in taxes by using the S Corp tax saving strategy?

—The S Corp tax saving strategy can save you 26% in taxes compared to being a sole proprietor. By incorporating health insurance premiums and HSA contributions, you can save even more.

What is reasonable compensation in an S Corp?

—Reasonable compensation in an S Corp is the salary you pay yourself as an employee. It should be based on fair market value for the services you provide and should not be excessively high or low.

Do I need to be a high-earning business owner to benefit from the S Corp tax saving strategy?

—No, the S Corp tax saving strategy can benefit business owners of all income levels. However, the higher your income, the greater your potential tax savings.

Can I incorporate other deductions into my payroll as an S Corp?

—Yes, in addition to health insurance premiums and HSA contributions, you can incorporate other deductions such as retirement plan contributions and business-related expenses into your payroll as an S Corp.

00:00In this video, learn how to maximize the S Corp tax saving strategy by incorporating health insurance premiums and HSA contributions into your payroll.

02:12Forming an S Corp can save you money in social security (SS) and Medicare taxes compared to being a sole proprietor.

03:50By properly incorporating health insurance premiums and HSA contributions into your payroll, you can increase your tax savings as an S Corp.

05:01When forming an S Corp, it's important to determine reasonable compensation for yourself as an employee.

06:51The S Corp tax saving strategy can save you 26% in taxes compared to being a sole proprietor.

08:16Consult with a tax professional to ensure you maximize the benefits of the S Corp tax saving strategy.