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Shoutout to the lawyer who pushed me to pick S-Corp over LLC for my agency
My business partner and I were about to sign LLC paperwork last spring. Our tax guy said either was fine. But the agency lawyer we met with in Chicago spent an hour breaking down how S-Corp would save us on self-employment taxes once we hit $80k profit. We switched last minute. Just filed our first year taxes and saved like $4,200. Has anyone else had a lawyer push them one way or the other and it worked out?
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brian_rivera593d ago
a couple months of rent" or "not life changing" - I see where she's coming from but I gotta disagree hard on this one. $4,200 is real money, especially when you're grinding through year one and every dollar counts. That's money you can reinvest into ads, software, or just paying yourself without eating ramen. I think people downplay what savings actually do for small operations. It's not about a vacation, it's about building a buffer so you don't stress every time a client pays late.
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hannahk193d ago
Maybe it's just me but $4,200 isn't life changing enough to stress over business structure.
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jordanc323d ago
Honestly @hannahk19 you're right in a lot of ways. $4,200 is like maybe a decent vacation or a couple months of rent, not a life changing number. But I think for people just starting out or doing this part time, that extra cash can feel huge and the stress of messing up taxes or getting sued is real. It's more about not wanting to lose that money to a dumb mistake than the amount itself.
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