satoshipacioli on Nostr: The Downsides of S-Corps 😬 Not everything’s sunshine and tax savings. Here’s ...
The Downsides of S-Corps 😬
Not everything’s sunshine and tax savings. Here’s the deal:
⚠️ Strict Rules: Max 100 U.S. shareholders, and only one type of stock allowed.
⚠️ Admin Work: Meetings, minutes, payroll, filings.
⚠️ “Reasonable Salary” Rule: The IRS expects owner-employees to pay themselves a fair wage (yes, even if profits are tight).
Make sure the benefits outweigh the hassle for your business.
Not everything’s sunshine and tax savings. Here’s the deal:
⚠️ Strict Rules: Max 100 U.S. shareholders, and only one type of stock allowed.
⚠️ Admin Work: Meetings, minutes, payroll, filings.
⚠️ “Reasonable Salary” Rule: The IRS expects owner-employees to pay themselves a fair wage (yes, even if profits are tight).
Make sure the benefits outweigh the hassle for your business.