The tax hack Schedule C business owners CAN'T use
🚨 Why LLCs DON’T save you on taxes… unless you do THIS
If your business is an LLC taxed as a sole proprietorship (Schedule C), you’re paying self-employment tax (15.3%) on your ENTIRE bottom line net income 😬
But when you make an S-Corporation election… everything changes, because:
💼 The S-Corp files its own tax return
📄 You receive BOTH a W-2 and a K-1
💡 Only the W-2 wages are hit with the 15.3% SE tax — and the K-1 portion avoids it completely
By paying yourself a reasonable salary and letting the rest flow through on the K-1, you can legally cut your self-employment tax bill DRAMATICALLY
❌ You CANNOT do this on a Schedule C
✅ You CAN do it with an S-Corp
➡️ Head over to our YouTube page for Andrew’s full breakdown on LLCs and how they compare to S-Corps
#TaxTips #LLC #SCorp #SCorpElection #SCorpConversion #TaxSavings #BusinessOwner #SmallBusiness #SelfEmployed #Entrepreneur #TaxStrategy #TaxPlanning #SETax #FICA #SelfEmploymentTax #TaxAdvisor #TaxAdvisory
Видео The tax hack Schedule C business owners CAN'T use канала Ledgerly
If your business is an LLC taxed as a sole proprietorship (Schedule C), you’re paying self-employment tax (15.3%) on your ENTIRE bottom line net income 😬
But when you make an S-Corporation election… everything changes, because:
💼 The S-Corp files its own tax return
📄 You receive BOTH a W-2 and a K-1
💡 Only the W-2 wages are hit with the 15.3% SE tax — and the K-1 portion avoids it completely
By paying yourself a reasonable salary and letting the rest flow through on the K-1, you can legally cut your self-employment tax bill DRAMATICALLY
❌ You CANNOT do this on a Schedule C
✅ You CAN do it with an S-Corp
➡️ Head over to our YouTube page for Andrew’s full breakdown on LLCs and how they compare to S-Corps
#TaxTips #LLC #SCorp #SCorpElection #SCorpConversion #TaxSavings #BusinessOwner #SmallBusiness #SelfEmployed #Entrepreneur #TaxStrategy #TaxPlanning #SETax #FICA #SelfEmploymentTax #TaxAdvisor #TaxAdvisory
Видео The tax hack Schedule C business owners CAN'T use канала Ledgerly
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25 августа 2025 г. 20:15:00
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