Guide to S Corp taxes for Small Business Owners: S Corporation FAQs and Tips

s corp tax

While we see a number of questions related to S Corp tax saving strategies, the top question we get from small business owners regarding taxes is:

“Am I paying too much in taxes?”

Are you a small business owner and feel like you’re paying too much in taxes? There’s a very good chance you might be.

We see it in small businesses like yours all the time.

Come tax season, your CPA tells you your bookkeeper missed several chances to save you money. But it’s too late. Your taxes are due, and the IRS is calling. Maybe next year. But you can avoid scenarios like this by being proactive and planning ahead.

Other Common Questions About S Corp Tax Saving Strategies:

  • ❓What can I write off on my S Corp taxes?
  • ❓How do you get the most out of an S Corp?
  • ❓Is it better to be taxed as an S Corp?
  • ❓How do I prepare my S Corporation Tax Return?
  • ❓What are S Corporations?
  • ❓What are the top tax saving strategies for S Corps?

The S Corporation Election

Reducing Your Tax Bill

Who Is an Employee?

An officer of a corporation is generally considered an employee. Being a shareholder doesn’t change the requirement that any payments to an officer must be treated as wages. Courts have consistently ruled that S corporation shareholders who provide more than minor services to their corporation are employees whose compensation is subject to federal taxes. There’s an exception for officers who do not perform or perform only minor services.

Starting a New Business

Are you starting a new business? If you are an entrepreneur and you are just launching your new business venture, here are some things to consider to make sure that you are set up for success.

Setting Up a LLC

A Limited Liability Company (LLC) is one form of business legal structure. Find out if it’s the right one for you.

Payroll and Compensation

If you have employees, or are even considering paying yourself as a business owner, there are a number of tax implications to consider to minimize your overall taxes. 

Accounting for Small Businesses

There are a number of accounting options for small businesses. Explore whether integrated accounting teams, and/or cloud accounting are a good fit for your business needs.

Maximize your tax savings now!

Don’t let another year slip by without maximizing your tax savings. As a small business owner, it’s crucial to stay ahead of the game. Schedule a consultation with our expert CPAs today and let us help you optimize your S Corp tax strategy. Reach out now and ensure your business thrives in 2024!

Insogna CPA