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We help businesses setup for or convert to S-Corp status, and then maximize its tax saving opportunities while staying compliant and operating within the law.
Get an S-Corp AnalysisFor most business owners, it makes sense to consider electing S-Corp status to reduce self employment taxes and for other benefits.
S-Corp status often helps business owners lower their social security and medicare taxes while still enjoying the benefits of an LLC. It is a tax treatment election, not an entity change, the entity remains an LLC.
There are rules and bureaucracy to consider but we make it easy by taking care of it all.
First and foremost, understand that net profits are subject to self-employment taxes before they pass-through to your personal tax return, where you determine state and federal income tax. S-Corp election only helps mitigate self-employment taxes, not state nor federal income taxes.
Self employed business owners pay medicare and social security on their net profits. Together, they are often referred to as "self employement tax" or "SE tax"
The largest portion that makes up self employment tax is social security taxes. You'll owe 12.4% social security taxes on your net profits up to the social security threshold. The limit is indexed each year, but it is $176,100 in 2025. This means all net profits, up to the limit of $176,100, is first subject to a 12.4% social security tax.
All net profits are subject to medicare tax, and in high income levels, it increases by 0.9%.
Should you be an S-Corp? Are you leaving tax savings on the table? Are you compliant and running it properly? Westfront Tax & Accounting will ensure you're getting the most out of your S-Corp election.
We'll analyze the proper implementation for an S-Corp election.
We'll help you setup and run an S-Corp, and we can convert your sole proprietorship to an S-Corp for you.
We help S-Corps determine a reasonable salary and provide additional tax planning strategies.
We manage your books and run payroll for your business.
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Below is a simple case study to help illustrate the effects an S-Corp election might have on social security and medicare taxes.
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