Fill Form 843 Pub 2011-2023

Instructions and Help about Fill Form 843 Pub

My people my people how's it going so today is going to be a fairly quick and easy one this is concerning escorts S corporations or small business corporations or small corporations the S Corp is a really great tool if you are a 1099 employee or if you are self-employed if your profit at any time in the next you know a couple years it's going to be more than ten thousand dollars then I seriously suggest that you do an escort the reason why is because an escort literally cut your self-employment tax in half and I'll explain how that works so number one just the use of numbers here let's say your profit is ten thousand dollars okay typically when you file just a regular of 1040 Schedule C with ten thousand dollars in profit then you pay fifteen point three percent of that in self-employment tax okay now if you if you have an escort then all of a sudden that ten thousand dollars of self-employment becomes only five thousand because with an escort you can pay yourself okay and I'm sorry I'm doing like three things at once right now but just bear with me so let's say you probably is ten thousand dollars okay what you can do is you can pay yourself five thousand dollars okay and you would pay the payroll tax or self-employment tax on the five thousand dollars the other five thousand dollars will go to you as what's called a distribution and that gets taxed at just regular income tax rates not self-employment tax rates we've also talked before about 197 amortization and amortization if you recall can be done on any return but it's it's it's really it's really better to only do it on a corporation or...