S-Corp Savings Come With Extra Paperwork

Описание: Here’s how taxes actually get reported for an LLC👇

👉 LLC (default): Business income goes on Schedule C, which flows to Schedule 1 → Page 1 of your 1040. Simple, but get hit with Self-Employment (SE) tax on the FULL profit 🙅

👉 S-Corp: You file a separate 1120S tax return, which issues you a K-1 alongside your W-2. That K-1 then flows to Schedule E → Schedule 1 → Page 1 of your 1040 and AVOIDS the SE tax 😎

⚠️ TRANSLATION: S-Corps can save you big on the dreaded self-employment tax (namely FICA 🤮) , but you’ll also need to file another tax return (and maybe hire help)

Always do a cost-benefit analysis and get an opinion from a tax advisor before making the switch ✅

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