The Victors

LLC is straight pass thru at 15.3% tax rate. S Corp you pay yourself a reasonable salary (which is taxed). The corp pays taxes and then any profit after that can be distributed tax free. Admin costs kill you so it has to be a really profitable consulting business before it makes sense**

Posted on August 11, 2026 at 03:28:54 PM by xcheck

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• Any Tards here CPA's? Looking for someone who is an expert on self-employment as a 1099. - By Beave August 11, 2026 at 02:07:42 PM
  • Not a CPA but my wife and I set up an S-corp for her consulting over the summer, so I'm familiar with that* - By LewisBullox August 11, 2026 at 02:18:17 PM
    • What reasons did you have for the S corp?* - By Beave August 11, 2026 at 02:36:27 PM
      • LLC is straight pass thru at 15.3% tax rate. S Corp you pay yourself a reasonable salary (which is taxed). The corp pays taxes and then any profit after that can be distributed tax free. Admin costs kill you so it has to be a really profitable consulting business before it makes sense** - By xcheck August 11, 2026 at 03:28:54 PM
        • S Corp owners (rather than the S Corp) pay tax on S Corp profits, don't they?* - By GoBrew August 11, 2026 at 03:53:56 PM
          • S corp pays half of the W2 FICA. K1 profit is taxed as income with potential QBI deduction.* - By LewisBullox August 11, 2026 at 04:16:00 PM
      • She has an LLC. The S-corp is just a tax status for the LLC. - By LewisBullox August 11, 2026 at 02:50:31 PM
        • This was how my LLC worked. * - By hurryup August 11, 2026 at 07:37:22 PM
      • Sounds cooler than LLC. Now.Z Corp, that's what you want on your business card.* - By jjwalker August 11, 2026 at 02:39:47 PM

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