Bob FraserCFO & Macro Strategist | Data-Driven Investing Expert | Speaker & Author

This 10 Minute Tax Fix Saved Him $60K

Name: This 10 Minute Tax Fix Saved Him $60K
Uploaded: 2026-05-15T19:00:08+00:00
Duration: 43 s
Channel: Bob Fraser
Description: In this short video, the hosts outline a four‑level tax‑strategy framework, emphasizing that every taxpayer should first ensure basic compliance (Level…

15 May 2026 · 1 min

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In this short video, the hosts outline a four‑level tax‑strategy framework, emphasizing that every taxpayer should first ensure basic compliance (Level 1). They illustrate Level 1 with a concrete case: a client earning about $2 million annually who was filing a single‑member LLC on Schedule C, which subjects all income to self‑employment (payroll) tax. By electing to be taxed as an S‑corporation, the client can treat a portion of earnings as salary (subject to payroll tax) and the remainder as distribution (not subject to payroll tax), reducing payroll tax liability by roughly $50‑60 k. The S‑election incurs a modest filing cost of a few hundred to a few thousand dollars, making the net savings substantial. The discussion is conversational and instructional, aimed at small‑business owners and tax‑savvy individuals.

Chapters

We look at tax strategy has 4 levels of planning. Level 1 of tax strategy is the IRS gives us guidance, but it doesn't take any investment.
And we always want to start here. Let's just make sure all the administration and bookkeeping pieces are buttoned up.
I know I'll give you one example. We had a client making $2 million a year, and I'm going to nerd out just a second. Um, it'll be— it won't be too far, but he was filing— he was a pass-through LLC filing on his Schedule C. If you're filing on your Schedule C as an LLC, it probably stands for catastrophe if you're making a lot of money because you're paying payroll tax on every dollar that comes through there. Now, over about $170,000, the payroll tax comes down, but still, when you're making $2 million a year, you're paying a very healthy amount of money to, to payroll tax. So we just made an S election there in that scenario.
And because Schedule C is a single-member business, right, so no partnership, sole proprietorship, it flows through if you don't have a unique election.
Yep, yep, exactly. So we were like, well, let's just go make the S election. Now we have to file our own tax return, which cost us probably a few hundred bucks, maybe a few thousand bucks to get that filed, but we're saving, I don't know, $50,000, $60,000 in payroll tax by just making one. And it's almost criminal that we're typically not out to replace people's CPAs, but like that CPA, they could have done that paperwork in 10 minutes.