The right S-corporation question is not “How much self-employment tax can we save?” It is whether the structure produces a durable economic and operational benefit after reasonable compensation, §199A, payroll, state tax, retirement plans, compliance cost, and implementation burden are considered together.
Who should attend
Practitioners advising Schedule C businesses, closely held corporations, and owner-employees.
Learning objectives
- Normalize business profit before modeling an entity change.
- Integrate reasonable compensation into the entity-choice analysis.
- Evaluate §199A, payroll taxes, state taxes, benefits, retirement plans, and compliance costs.
- Identify implementation requirements and common post-election failures.
Two-hour agenda
- When the S-corporation question should be asked
- Reasonable compensation and sensitivity testing
- Federal and state interactions
- Net Economic Benefit and administrative burden
- Implementation and annual re-evaluation