As an S corporation, there are several ways you can save on taxes.
Keep your salary reasonable: As an S corporation, you are considered an employee of the company and are required to pay yourself a salary. However, the IRS has rules in place to prevent owners of S corporations from underpaying themselves in order to save on taxes. To avoid any potential issues, it's a good idea to make sure your salary is reasonable and commensurate with the work you do for the company.
Take advantage of deductions: As an S corporation, you can take advantage of deductions for business expenses that are directly related to your business. This can include things like office supplies, travel expenses, and more. By keeping track of your business expenses and claiming deductions for them, you can save on your taxes.
Invest in your business: Another way to save on taxes as an S corporation is to invest in your business. This can include things like purchasing equipment or making improvements to your office. These investments can be written off as business expenses, which can help reduce your taxable income.
Contribute to a retirement plan: As an S corporation, you can set up and contribute to a retirement plan for yourself and your employees. This can help you save for the future and reduce your taxable income in the present.
Consider your tax rate: Finally, it's important to consider your tax rate when planning for taxes as an S corporation. The tax rate for S corporations is generally lower than the rate for other business structures, so this can help you save on taxes.
With Mizzen we will work with you year round to strategize the best ways to help you save. We provide quarterly check ins to discuss savings options to help eliminate the year end rush.
Enjoy peace of mind when you partner with Mizzen.
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