Incorporation Session 15 - C Corporation vs. S Corporations
We introduce the S Corporation and explain what makes these entities different. S Corporations can be used to eliminate several types of taxes. Here we explain how to use an S Corporation to cut Social Security and Medicare taxes, which results in a 19.3% reduction in the overall tax bite on your income. Kevin explains the difference between paying a salary, distribution and bonuses to yourself as an owner of an S Corporation. You will learn how to keep your S Corporation payments legal, very important with any business and tax strategy.
Inside This Session
- What is an S Corporation?
- The IRS and taxation rates for corporations
- Eliminating Social Security and Medicare taxes
- How to pay yourself with an S Corporation
- Keeping it legal