In today's episode of "What Works Wednesday," we tackle the often-misunderstood realm of tax options for LLCs. Contrary to common belief, an LLC is not inherently tied to a specific tax status; rather, it offers flexibility in how it can be taxed. In this installment, we shed light on a savvy strategy—opting for S-Corporation taxation within your LLC—to unlock potential tax savings. While default LLC taxation involves a pass-through structure, where profits and losses flow to individual tax returns, electing S-Corporation status allows for a more nuanced approach. By receiving a portion of income as a salary and the rest as distributions, business owners can sidestep certain self-employment taxes, resulting in substantial financial advantages. Tune in to "What Works Wednesday" to gain valuable insights, demystify the tax landscape for your LLC, and embark on a journey to maximize your yearly tax savings.
LINKS
PeaceLink Financial Planning
In today's episode of "What Works Wednesday," we tackle the often-misunderstood realm of tax options for LLCs. Contrary to common belief, an LLC is not inherently tied to a specific tax status; rather, it offers flexibility in how it can be taxed. In this installment, we shed light on a savvy strategy—opting for S-Corporation taxation within your LLC—to unlock potential tax savings. While default LLC taxation involves a pass-through structure, where profits and losses flow to individual tax returns, electing S-Corporation status allows for a more nuanced approach. By receiving a portion of income as a salary and the rest as distributions, business owners can sidestep certain self-employment taxes, resulting in substantial financial advantages. Tune in to "What Works Wednesday" to gain valuable insights, demystify the tax landscape for your LLC, and embark on a journey to maximize your yearly tax savings.
LINKS
PeaceLink Financial Planning