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Back in 2018, I had to pick between a standard LLC and an S-Corp for my side gig in Phoenix.
My accountant said the S-Corp could save me maybe $2,000 a year in self-employment taxes, but it meant more paperwork and a payroll service. I went with the simple LLC because I was just starting out and didn't want the hassle. Looking back, it was the right call for that stage, even though I switched to an S-Corp election two years later when the income got steadier. For a solo owner just getting off the ground, when is the S-Corp jump actually worth it?
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drew555d ago
That $80k number from Phoenix gets thrown around a lot...
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adamr145d ago
My Phoenix neighbor made the S-Corp switch at about $80k in steady profit, which seems to be the common tipping point. It's like upgrading tools only after your hobby clearly becomes a real workshop.
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