Make a change and keep the change!

Business owners who are not operating under the umbrella of an S corporation are very likely contributing more than necessary to what I believe is the greatest Ponzi scheme of all time, social security and medicare.

My client recently converted his business to an S Corporation. By legally reclassifying a portion of his compensation as profit distribution we reduced his social security and medicare tax burden by about $2,300 per year, substantially more than the slight increase in the cost of administering an S corporation.

If you are not doing business as an S corporation it is time to reconsider.