An S corporation allows you to reduce your tax burden, but it also requires additional administrative work.
Do you have an S corporation, or have you been told you should have one? You were probably told that an S corporation can save you on taxes, but has anyone explained the responsibilities that come along with owning an S corporation?
The S corporation provides an effective method for small business owners to reduce their tax burdens, making it an attractive and common method. Many accountants and advisors set up S corporations for their clients without properly educating owners on the responsibilities of owning an S corporation. Lacking proper guidance, owners quickly run into serious issues that could generate substantial tax implications.
This post breaks down some of the most common issues I see S corporation owners face. Addressing these common issues should help you maintain a compliant, effective S corporation.
