S-Corp Advisory
S-Corp Advisory
The S-Corp election is one of the most powerful tax saving tools a profitable business has, but only when it's set up and managed correctly. Pierre runs the numbers first, so the election only happens when it actually pays for itself.
The election only happens when the math says so
A trade owner running as a sole proprietor or a single member LLC pays 15.3% self employment tax on every dollar of profit, on top of income tax. That's the problem an S-Corp election is built to address, and it's also why getting the timing and the setup right matters as much as making the election at all. Elect too early, or run an S-Corp without the right salary and payroll setup behind it, and it can cost you money or trigger IRS issues instead of preventing them. Pierre runs a break even analysis before anything is filed, so the switch only happens once the savings clearly outweigh the added payroll and compliance cost.
What S-Corp advisory covers
Eligibility and break even analysis come first, followed by a reasonable salary determination and the salary versus distribution split that keeps you compliant while keeping the savings real. From there it's payroll setup guidance, quarterly compliance check ins so the structure stays correct as your income moves, and a retirement contribution strategy that uses the new structure rather than ignoring it.
Pierre The Tax Guy, Flat fee quoted before any work starts. Call (717) 331-2154.
The problem it solves
15.3%
Self employment tax on every dollar of profit, before income tax.
That's what a sole proprietor or single member LLC pays on top of income tax, on top of every dollar the business makes. An S-Corp election, set up and managed correctly, is how that number stops applying to the whole profit and starts applying to a reasonable salary instead.
What it's looked like in practice
A break even analysis before a single form gets filed
One plumbing company client with $220,000 in profit combined an S-Corp election and reasonable salary with SEP-IRA maximization and a vehicle and equipment strategy, for an estimated annual saving of $24,800. Results vary based on individual circumstances; this is an illustrative example, not a promise about your own numbers. What stays the same across every client is the order of operations: the break even analysis and the reasonable salary determination happen before the election, never after.
$24,800
Illustrative annual saving
Plumbing company, $220K profit: S-Corp election plus reasonable salary, SEP-IRA maximization, and a vehicle and equipment strategy.