Call Us Today 508-650-1122 Client Portal

LLC converts to S Corp to avoid $160,000 Medicare tax

Paresky Flitt & Company, LLP in Wayland, MA has worked with a very profitable single member LLC located in Chicago for many years.  Due to recent tax law changes, brought about by the Affordable Care ACT (ACA) they were now subject an additional tax of 3.8% on all of their self-employment income.  Due to the income level of this client this was a substantial amount of money.

By changing their tax status from an LLC to an S Corporation, we were able to save approximately $160,000 per year in federal income taxes.  This is because S Corporation income is not considered self-employment income, therefore saving the self-employment tax and additional Medicare tax.

We helped this client, and we can help you too.
Call us at 508-650-1122
« See more 30 Second Case Studies in Accounting

“I enjoy working with Lee. He does a good job for us on the accounting side, he’s a good person to do business with, and he has a good sense of humor....
Read More »
Matt Leslie
Wilson Architects