Money Ning has a great blog post about how incorporating can save you money.
It is true that if you incorporate, there are some tax advantages that are available. You should consult your tax and/or legal
"Wait, Incorporating Can Save Me Money?"
professional if the move to incorporate is right for you as a whole.
If you are already incorporated and want to do an S-Corp election, again, you should consult your tax professional to see if that is the right move for you, because sometimes it’s not.
I had a client that was already incorporated for a few years and heard all the good stuff about S-corps. I told him to consult his tax professional to review his finances to see if it would be beneficial for him. I followed up with him and the client said there would be no benefit to an S-Corp election in his case.
Sometimes, you can even make more money by being a legal entity.
- Dan
Image: Sujin Jetkasettakorn / FreeDigitalPhotos.net
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That is good advice. Most people think that an S-Corp will help save all corporations money and the reality is that there are many things to consider.
Absolutely. Creating the entity is both a legal and financial decision by the business owners.