Some social media marketers heavily push the tax saving potential of S corporations. Seasoned tax professionals and small business attorneys are not so entheusiastic.
This week I was asked about this tax planning approach by two businesses with many similarities. This worksheet estimates the benefits and the costs of each.
The conclusion: sometimes an S-corporation is worth consideration as a tax planning tool and sometimes it is not.
The National Law Review article mentioned in the video is here:
Post-recording note: The video does not discuss the additional ongoing accounting costs or requirements of running a business with an S corporation election. Specifically, it does not consider the difference in accounting costs, state or local taxes (if any), or legal issues.