Quote:
Originally Posted by PersianKitty
Gator.. true and not true.
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What's not true? Everything I posted was true. His numbers were wrong. First of all the SE tax rate is 15.3% not 15.65%. Secondly. Only income $94,200 and under is subject to that 15.3% above that is subject to 2.9% rate.
I'm not commenting which is better or worse. I'm correcting math errors. If that poster is going to make a case about one being better than the other then that poster needs to at least have his facts straight.
Really it depends on the individual situation. If someone is new to this or only does it for part-time money and only makes $10K a year, it's a bit silly to form a S-corp. What's his salary going to be, the entire $10k?
You say you pay yourself $200K. Well that's great. Do you know how many people here don't even gross that? Fact is if one forms a S-corp and one pays oneself close to minimum wage you can bet the IRS is going to look at that.