The wrong entity quietly costs contractors tens of thousands a year. S-corp elections and reasonable salary, LLCs, C-corps, QSubs, holding companies, and what happens when you run several companies at once.

🚧 Contractors: Should You Have an LLC? (The Real Answer)

12 Apr

Entity Structure

🚧 Contractors: Should You Have an LLC? (The Real Answer)

Posted by

Janet Mercer

April 12, 2026

If you’re a construction contractor still operating under your personal name… or worse… as a “side hustle” with no business structure… You’re playing financial Russian roulette. Be

Contractors: The S-Corp “Loss Write-Off” Advantage Nobody Explains Simply

12 Apr

Entity Structure

Contractors: The S-Corp “Loss Write-Off” Advantage Nobody Explains Simply

Posted by

Janet Mercer

August 29, 2026

Most contractors think S-Corps are only about: “Saving self-employment tax.” But here’s a different benefit that can matter a LOT—especially in early years or big equipment…

🟣Contractors: S-Corp “Reasonable Salary” Can Make or Break Your Tax Savings

12 Apr

Entity Structure

🟣Contractors: S-Corp “Reasonable Salary” Can Make or Break Your Tax Savings

Posted by

Janet Mercer

August 29, 2026

Everyone wants an S-Corp for one reason: to reduce self-employment tax But here’s the part contractors mess up: You can’t just pay yourself $20K and call the rest “distributions.

🚧 When Construction Deals Fail: The Tax Fallout

12 Apr

Entity Structure

🚧 When Construction Deals Fail: The Tax Fallout

Posted by

Janet Mercer

April 12, 2026

Contractors often spend real money trying to buy:• Another construction company• A specialty trade shop• A competitor with crews & equipment When the deal dies, the big question is

If you run an S-Corp and pay yourself a salary + distributions, December 26 is not too late to fix one of the most audited issues contractors face: reasonable compensation.

12 Apr

Entity Structure

If you run an S-Corp and pay yourself a salary + distributions, December 26 is not too late to fix one of the most audited issues contractors face: reasonable compensation.

Posted by

Janet Mercer

April 12, 2026

Underpaying yourself is the #1 reason S-Corps get audited—and it’s how contractors end up owing back payroll taxes, penalties, and interest years later. A few reminders before year

Income splitting gets hyped online as “easy tax savings.” In reality, it’s one of the fastest ways contractors end up audited if done wrong.

12 Apr

Entity Structure

Income splitting gets hyped online as “easy tax savings.” In reality, it’s one of the fastest ways contractors end up audited if done wrong.

Posted by

Janet Mercer

April 12, 2026

Yes—income splitting can be legitimate. But only when it’s real, documented, and defensible. What income splitting is not:• Hiding income• Paying family members who don’t actually

If you own an S-Corp and work in the business, the IRS expects you to pay yourself a reasonable salary.

12 Apr

Entity Structure

If you own an S-Corp and work in the business, the IRS expects you to pay yourself a reasonable salary.

Posted by

Janet Mercer

August 29, 2026

Not sometimes.Not “when cash flow improves.”Always. Here’s why this matters in construction Many contractors take little (or no) payroll and pull everything out as…

12 Apr

Entity Structure

If you run your construction business as an S corp, LLC, or sole prop, you should know the Section 199A deduction (the 20% pass-through business deduction) is now permanent thanks to the new tax bill.

Posted by

Janet Mercer

August 29, 2026

But here’s the deal…If your 2025 taxable income goes over $197,300 (single) or $394,600 (married), that 20% deduction can phase out fast — or disappear completely. Here are 3 year-

Many contractors running S-corps think, “I’ll just pay myself a big bonus at year-end, withhold taxes, and call it good.”Sounds smart, right? Not so fast.

12 Apr

Entity Structure

Many contractors running S-corps think, “I’ll just pay myself a big bonus at year-end, withhold taxes, and call it good.”Sounds smart, right? Not so fast.

Posted by

Janet Mercer

April 12, 2026

Here’s why this strategy can backfire: 1) Payroll taxes sting: A $100,000 W-2 bonus can cost you and your company over $15,000 in extra Medicare and Social Security taxes — far mor

How to Correctly Pay Yourself and Take Cash from Your Business 💰

12 Apr

Entity Structure

How to Correctly Pay Yourself and Take Cash from Your Business 💰

Posted by

Janet Mercer

April 12, 2026

One of the most common questions I get from business owners is:“What’s the right way to pay myself from my business?” The answer depends on your business structure. Here’s a quick

🏢 QSub vs. LLC: Which Structure Works Best?

12 Apr

Entity Structure

🏢 QSub vs. LLC: Which Structure Works Best?

Posted by

Janet Mercer

April 12, 2026

For S corporation owners, forming a Qualified Subchapter S Subsidiary (QSub) can be a smart move. Here’s why it matters: A QSub is disregarded for federal tax purposes—so the paren

27 Mar

Entity Structure

Why Smart Contractors Are Rethinking the S-Corp and Looking at C-Corps

Posted by

Janet Mercer

August 29, 2026

Most contractors default to an S Corp because they’ve been told it “saves taxes.” But that advice can cost you...

25 Mar

Entity Structure

Forming an LLC Isn’t Enough: The Entity Setup Mistakes Contractors Make

Posted by

Janet Mercer

August 29, 2026

Most contractors think setting up an LLC means they’re “done.” They’re not. What I see all the time: – No EIN ...

04 Mar

Entity Structure

Calendar Year vs. Fiscal Year: Did You Choose the Right One for Your Business?

Posted by

Janet Mercer

August 29, 2026

When you started your construction company… Did you intentionally choose your tax year? Or did it just default...

12 Jan

Entity Structure

Loans vs. Capital Contributions: The Decision That Could Save Your Construction Business

Posted by

Janet Mercer

August 29, 2026

If you own a construction company, you’ve probably put personal money into the company at some point. Payroll ...

20 May

Entity Structure

If you’re part of a multimember LLC taxed as a partnership (or a traditional partnership), you might occasionally pay out-of-pocket for items like travel, meals, car expenses, continuing education, professional dues, or even home office costs.

Posted by

Amir Khan

August 29, 2026

You generally have two paths to take these items as deductions: Reimbursement: If your LLC or partnership reimburses you—provided the expense qualifies as a business cost, is…