Ryan VaughnCOO of Incite Tax & Accounting. Ask me anything about your taxes.

S Corp For Self Employment Tax | Incite Tax

26 Mar 2025 · 1 min

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In this brief, informal video segment, the speaker warns that self‑employment tax consumes 15.3% of a freelancer’s take‑home pay and can quickly erode earnings. He explains that the only practical way to reduce this burden is to structure the business as an S corporation, allowing the owner to split earnings into a reasonable salary (subject to payroll taxes) and dividend distributions (exempt from self‑employment tax). By doing so, the speaker claims one can “save a shitload of money.” He concludes with a promotional call‑to‑action, inviting viewers to comment the word “cactus” to receive a free resource that purportedly helps them avoid the tax.

Chapters

This is the tax that'll keep you broke and put money back in the IRS pocket, and it's called self-employment tax, and it counts for 15.3% of your take-home pay, and it can add up really fucking fast. Now you may be wondering, how can I even avoid this tax? And the funny thing is, is you can't unless you're structured properly. We recommend that you split your income into a salary and dividends, and you can do this by electing an S corp. This allows you to minimize your self-employment tax And save yourself a shitload of money. Now I don't want to bore you with all the tax jargon, but if you want to learn more, comment the word cactus and I'll send you a free resource so you can stick it to the IRS.