By Jason Watson, CPA
Posted February 22, 2020
This book is written in a conversational tone. If you like perfect prose and editorial exactness that you would expect in a book on brain surgery, then we will be disappointing. We make jokes, some of which are only funny to ourselves. We don’t have the best punctuation. We might even have a missing word or a misspelling. We are nerdy accountants who did everything possible to avoid English literature and writing classes.
You’ll see about 15 pages of duplicate content. We did this since everyone jumps into a book at different places, especially on our Knowledge Base version. Time is all you have on earth to sell, and it cannot be inventoried nor is it refundable; just do a Bob Seger and turn the page if you’ve seen it before.
How Did We Get Here?
How can I avoid self-employment taxes? This simple question was the inspiration for creating an article describing the benefits of an S Corporation. That original article, which was about four pages long, quickly became a series of Knowledge Base articles on the WCG website. The articles touched on basic topics such as how to elect S Corp status, S Corp vs LLC, shareholder payroll, reasonable salary determination, retirement planning, health care, fringe benefits and liability protection.
Those broad topics demanded much more information, both horizontally by spanning into more related issues, and vertically by digging deeper into the granular yet riveting levels of the tax code. The articles were grouped and relabeled as the Taxpayer’s Comprehensive Guide to LLCs and S Corps which grew to 39 pages in its first edition. Sorry, all the good titles were taken (remember, the longer the title the less important the material is. Bible, Beowulf, Caddyshack… short and sweet). The Hunt for Red October is one exception, yet we digress.
Time marched on, and more information was added to the first edition such as expanded retirement planning concerns, health care options after the Affordable Care Act and business valuations including exit strategies. Boom, we now had our second edition at over 100 pages. At that point it was suggested by some clients and colleagues to convert the PDF into an eBook as well as paperback.
Specifically we owe a ton of success to a woman named Cherie who writes faith-based books for children. After a consultation on her LLC being taxed as an S Corp, she said, “Hey, make these articles into a book.” All we could do is envision pallets of stale outdated books. Thanks for Amazon and their print on demand service, we can update as often as necessary. Thank you Cherie!
So here we are on our eighth edition which is now called the 2020 edition, and the changes are primarily focused on recent changes from the SECURE Act, new 2020 limitations and other minor things.
Each week we receive several phone calls and emails from small business owners and other CPAs across the country who have read our Taxpayer’s Comprehensive Guide to LLCs and S Corps and praised the wealth of information. Regardless of your current situation, whether you are considering starting your own business or entertaining a contracting gig, or you are an experienced business owner, the contents of this book are for you.
This book will show you how to reduce your self-employment taxes through an S Corporation election and how to use your corporation to your retirement and fringe benefit advantage. You will also learn the operational considerations of an S Corp plus the 185 reasons you should NOT elect S Corp status. Want to talk about tax deductions? That’s in here too.
This book is written with the general taxpayer in mind. Too many resources simply regurgitate complex tax code without explanation. While in some cases tax code and court opinions are duplicated verbatim because of precision of the words, this book strives to explain many technical concepts in layperson terms with some added humor and opinions. We believe you will find this book educational as well as amusing.
Enjoy! And please send us all comments, hang-ups and static. This book is as much yours as it is ours, except the tiny royalty part- that’s ours. Stop by and we’ll buy you a beer with the pennies.
WCG Inc. (formerly the Watson CPA Group)
2393 Flying Horse Club Drive
Colorado Springs CO 80921
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Taxpayer’s Comprehensive Guide to LLCs and S Corps : 2020 Edition
This KB article is an excerpt from our book which is available in paperback from Amazon, as an eBook for Kindle and as a PDF from ClickBank. We used to publish with iTunes and Nook, but keeping up with two different formats was brutal. You can cruise through these KB articles, click on the fancy buttons below or visit our webpage which provides more information at-