Quote:
Originally Posted by Alan A
So as a rule of thumb roughly what $ number would you want before an S-corp becomes worthwhile?
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I tell clients it starts making sense around $50k in profit. My test is they need to save at least 2.5-3x's what I'm going to charge them for the additional returns (payroll, S corp).
Also depends on the type of business and what 'reasonable compensation' would be. That is to say retail businesses may have a different reasonable comp for a given profit than service businesses.