Mark Kohler explains how small-business owners can save up to 15% on taxes by converting to an S corporation once earnings hit $50,000. The strategy splits income into a salary subject to payroll taxes and distributions that skip FICA, freeing up money to reinvest in growth.
I don't want to pay all of this fica. So we convert to an S corp. I got to tell you, every dentist, doctor, engineer, landscaper, restaurant owner, cpa, attorney, independent consultants, we're all S corporations. Because once you make $50,000 or more, I want to split this income. I want to call some of it salary and some of it pass through. This is the strategy. So one of the best ways to unlock your business potential and make more money is to use this form of doing business and create a SAL that's reasonable and push out all this profit. And when you start saving this money, we're going to start deploying it in some very powerful ways.
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