S Corp Disadvantages That Can Harm You - 6 Drawbacks You Need to Know.

"if you're going to be saving $10,000 $15,000 operating as an S corporation then I would say yes you know these costs of the S corp these disadvantages of the S corp you know it's gonna be totally worth it the benefits will outweigh the costs however in a situation where your tax savings what the S corp will be about you know this is just my opinion if your savings will be about two thousand dollars you know three thousand dollars it won't be worth it"

"if your tax savings isn't the realm of four thousand seven thousand eight thousand that you know that's kind of a middle ground you know that's that's kind of an area where it's not clear-cut where it's clear-cut bns Clark clear-cut don't be an S corp in that situation you need to just you know it's your purpose personal preference you know to weigh the pros and cons and see whether it's worth it to you"

"if you're gonna buy at home software to do this I mean that's still gonna run you probably about a hundred to two hundred dollars for the software costs or if you're gonna work with an accountant you might be paying five hundred two thousand dollars for this corporate tax return depending on where you live and accountants whatever they're charging it might be less it might be more but that's typically on average what they will be charging for this S corporation tax return"

"generally you're talking about state unemployment tax is about 200 to 500 dollars a year however depending on the states a lot of states that cost drops down to as low as $30 a year or $50 a year per employee per person if you have a good record of not laying your employees off so it's long as you don't lay yourself off but usually you need to build a track record of about three years for that unemployment cost to be reduced so from your year one and subsequent years until you reach that point expect to pay state unemployment taxes which is an employer tax on yourself for about two hundred to five hundred dollars annually"

"in 2020 up to a hundred thirty seven thousand seven hundred is subject to Social Security taxes"

"expect a monthly software cost of whatever payroll provider you're choosing expect the monthly software costs about $25 a month to $50 a month"

"if you're in Chicago your corporation your S corporation will pay an additional corporate tax at a rate of 1.5%"