MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Is It Time to Switch Your LLC to an S-Corp?

27 Sept 2025 · 1 min

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Mark Kohler says small-business owners should consider switching their LLC to S-corp status once net income hits around $60,000. The main benefit is cutting self-employment taxes, which can save thousands on federal and state taxes. Filing as an S-corp also changes your tax return format in a way that lowers audit risk.

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Small business owners are starving for good tax tips and they just want some actionable items and the one we love the most is right up there in the top three is the S corporation and you could have an LLC taxed as an S corporation but when business owners start to get around $60,000 in net income so gross minus all my expenses I'm taking home around 60 I need to be looking at converting to the S corporation. Very affordable to do, very simple to maintain but what you're doing is saving on the number one tax before state and fed and that's fica. We want to save on self employment tax. A lot of accounts can be too conserv there. You got to drive your own car here people. You're the captain of your ship so have a conversation or review with someone about the self employment tax issue and you actually reduce your chances of an audit when you move to an S corp now you're filing on a different tax return.