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“S corp saves taxes.”

“S corp saves taxes.”

Sometimes true.Sometimes very expensive advice.

An S corporation is not a badge of success — it’s a tool. And like any tool, it only works when used correctly.

Yes, S corps can reduce self-employment tax.But they also come with real obligations:• Reasonable salary rules• Payroll compliance• Annual filings• Long-term exit consequences

What most contractors don’t plan for:Revoking an S corpLiquidating oneOr getting stuck with a structure that no longer fits the business

This isn’t something to “try and see.”

If you’re consistently profitable and disciplined, an S corp can be powerful.If not, it can create audits, penalties, and regrets.

Tax strategy should fit your business — not the other way around.

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