The IRS reclassified $45,000 of his S-Corp distributions as wages. He owed $6,885 in back payroll taxes, plus penalties and interest. Total damage: over $9,000. His reasonable salary?

A 3-shareholder S-Corp filed two months late. The IRS penalty? $1,320. Not for owing taxes. Just for filing late. The return showed zero tax due. S-Corp deadlines are

Last month I analyzed a $120,000 consulting business. The owner was paying $18,378 in self-employment tax as an LLC. As an S-Corp with $60,000 salary? $9,180. That’s $9,198

An S-Corp isn’t a type of business. It’s a tax election. This trips up most business owners. They think they need to form something called an “S-Corporation” with

“Can my S-Corp pay my health insurance?” Yes. But there’s a specific way to do it. The rules are unusual: You add it to income, then deduct it

“I thought I had to dissolve my LLC and form a new corporation. I was wrong.” An LLC can elect S-Corp tax treatment without changing anything with the