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S-corporations have become really popular over the last few decades. As business owners become more aware of their businesses financial state and overall financial health. S-corporations require a little more responsibility. Ultimately electing in, can save your business thousands in tax liability over the course of the businesses lifetime.

When considering an entity change,

There’s a few things to consider. Does your business profit enough at the end of the year and/or are you expecting your business to turn a profit at the end of the year? If your business expects a profit $40,000 or more, you may want to look into an S corporation.

S corporations are a great way to save on self-employment tax. Because the an S-corporation acts as a passthrough entity, this means that all credits, deductions, profits and losses are passed through to the shareholder. The shareholder is only taxed for income made from the business to the shareholder usually in the form of a salary or 1099.

Electing into an S corporation can be a tricky process. A1 Bookkeeping Service can help you to navigate the waters. We can help you determine if an S corporation election is the right thing for your business. To save your business thousands on tax, give us a call today! (303) 335-0580