S Corp Hard Money Facts, Net Savings
Posted May 5, 2019
Sales pitch alert! The Watson CPA Group specializes in S corporations which have a small number of shareholders, and often just a one-person show. Did you know that 95% of all S Corps have only one shareholder, and 99% of all S Corps have three or fewer shareholders?
Because small businesses are a core competency for us, we have created an S Corp package that includes the following-
|S Corp Reasonable Salary Calculation (sample report)||Yes||Yes||Yes|
|Section 199A QBID Tax Optimization (more info)||Yes||Yes||Yes|
|S Corp Payroll Filings and Deposits||Yes||Yes|
|Annual Processing (W2s and other filings)||Yes||Yes|
|S Corporation Tax Prep (Form 1120S)||Yes||Yes||Yes|
|Individual Tax Prep (Form 1040), One Owner||Yes||Yes|
|Estimated Tax Payments (done thru payroll or directly by us)||Yes||Yes||Yes|
|2019 Tax Planning, Mock Tax Returns (Tax Questionnaire)||Yes||Yes||Yes|
|Unlimited Consultation and Periodic Business Reviews (PBR)||Yes||Yes||Yes|
|First Research Industry Reports (sample report)||Yes||Yes||Yes|
|Small Business Tax Deductions Optimization||Yes||Yes||Yes|
|IRS Audit Defense||Yes||Yes|
Couple of things to keep in mind- we make very little profits on payroll processing… we offer it as a convenience to our clients. One throat to choke with a single call can be reassuring but if you want to run your payroll, go for it! And… the benefit of the Watson CPA Group preparing both tax returns is that we slide things around depending on income limitations, phaseouts, alternative minimum tax (AMT), etc. Having our arms around both can yield great tax planning and some excellent tax savings!
Some more things to consider- when a partial year remains, our usual annual fee is pro-rated to not charge you for services you didn’t use (like payroll and consultation). However, a large chunk of our annual fee is tax preparation which is typically a fixed amount of $1,300 (both corporate and personal). Whether we onboard you in January, July or December, we have to prepare a full-year tax return. This increases the monthly fee for the remaining months of the year but the monthly fee will later decrease in January of the following year to reflect the amounts above.
Break-even analysis is based on our annual fee of $2,940. If an S corporation saves you 8% to 10% (on average) in taxes over the garden-variety LLC, then $2,940 divided by 9% equals $32,667 of net business income after expenses.
You can always find someone to do it for less- we know that. At the same time, we have a vested interest in your success and provide sound tax and business consultation as a part of our service. Here is a link to our Periodic Business Review agenda that we cover throughout the year so our consultation to you is comprehensive-
We also have written a webpage on end of year tax planning-
Common S Corp candidates and current clients for the Watson CPA Group are consultants, financial advisors, physicians, chiropractors, doctors, surgeons, anesthesiologists, nurse anesthetists, insurance agents, photographers (the profitable ones), online retailers, FBA retailers, among several others. We also have several medical groups and financial advisor teams.
Taxpayer’s Comprehensive Guide to LLCs and S Corps : 2019 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-