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Nc Corporation Form

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Michael Velasco profit accounting services I wanted to share a client example that we had in where we transitioned in LLC into an S Corp and how much money we saved him so let's take a look at this client example this was $100,000 net profit business right that we brought in and we said you know you really should transition to an S corp and so the LLC typically at a hundred thousand dollars you're gonna pay your state taxes your federal taxes right and then the kicker you're gonna pay that 15.3% self-employment tax right which is really a fifteen thousand three hundred dollar tax penalty out of a hundred thousand dollars net income okay in addition you're gonna pay the fifteen percent and the five percent twenty percent total on top to your state and your federal taxes so it's another twenty thousand dollars that you're gonna pay so this regular LLC not set up as an S corp is going to pay a thirty-five thousand three hundred dollar total

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