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

The S-Corp Strategy LLCs NEED to Cut SE Tax Costs! #Entrepreneur #TaxAdvice

25 Aug 2026 · 1 min

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This content was created by MARK KOHLER. This content was uploaded by MARK KOHLER. This is a YouTube video titled "The S-Corp Strategy LLCs NEED to Cut SE Tax Costs! #Entrepreneur #TaxAdvice" (created 2026-08-25T00:00:24Z) featuring MARK KOHLER delivering concise tax advice for Americans with side hustles and LLCs. He explains an S-corp election to reduce self-employment (SE) tax, gives a numeric example ($100,000 net profit split into $40,000 salary and $60,000 pass-through so 15.3% SE tax applies only to the $40k), notes this avoids SE tax on the $60k (about a $9,000 savings versus remaining an LLC), and recommends making an S election if net income exceeds about $50,000.

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If you're one of the 40 million Americans with a side hustle and an LLC, do you know what your biggest cost is? It's your taxes. So I want to give you a pro tip and one of the best tax strategies before year end. You're going to pay 15.3% or $6,000 in self-employment tax right off the top. Now, in an S corporation with $100,000 of net profit, we're going to split up that. We're going to allocate $40,000 of it to salary and $60,000 of it to pass-through income. Now, when we do that, you pay the 15.3% or self-employment tax on the $40,000, but not on the $60,000. What that means is We're not paying 15.3% on the $60,000 of pass-through income you would have as an LLC. That's approximately $9,000. So if you've been an LLC in 2024 and you're going to make more than $50,000 of net income, we want to make an S election and turn you into an S corp. Follow to learn more and I'll see you soon.