Entrepreneurship Archives - The C.P.A. Partner to Growing Businesses https://aemctax.com/category/entrepreneurship/ The C.P.A. Partner to Growing Businesses Mon, 09 Dec 2024 03:15:07 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://i0.wp.com/aemctax.com/wp-content/uploads/2020/08/cropped-cropped-new_a_logomark_black-orangedot-e1638941104629.jpg?fit=32%2C32&quality=89&ssl=1 Entrepreneurship Archives - The C.P.A. Partner to Growing Businesses https://aemctax.com/category/entrepreneurship/ 32 32 200755216 3 Reasons to Pay a Higher Salary as a S-Corporation Owner https://aemctax.com/3-reasons-to-pay-a-higher-salary-as-a-s-corporation-owner/ https://aemctax.com/3-reasons-to-pay-a-higher-salary-as-a-s-corporation-owner/#respond Mon, 17 Jan 2022 17:38:53 +0000 https://aemctax.com/?p=3918 In this article, we give some ideas you can take into consideration when determining your salary as an S-Corporation owner. These suggestions are based on you already having a basis for determining what your reasonable compensation range would be based on the factors we discuss in our previous article, “Reasonable Compensation – What No One […]

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In this article, we give some ideas you can take into consideration when determining your salary as an S-Corporation owner. These suggestions are based on you already having a basis for determining what your reasonable compensation range would be based on the factors we discuss in our previous article, “Reasonable Compensation – What No One is Talking About”.

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1. Consider pension benefits your S-Corporation can pay you. For example, if your S-Corporation creates a SEP IRA retirement plan, your company would be able to contribute a deductible, 25% of your compensation or a maximum of $61,000 (for year 2022). If your salary is too low, however, you can’t maximize your pension benefits.

2. Check with Social Security to determine if you have paid in enough credits to be eligible for benefits. Second, the amount of your benefits takes into consideration your highest 35 years of salaries. If your income has been low, then you can consider taking a higher salary to help increase your future benefit amount.

3. The amount of payroll taxes is most often considered with many S-Corporation owners seeking to keep this amount as low as possible. Consider if your reasonable compensation range is $130K to $150K, the maximum amount of wages you’ll pay social security tax of 6.2% on is $142,800. Over this amount, you will continue to pay Medicare tax of 2.9%. However, if paying yourself over this amount will increase your pension contribution, you could save up to 37% in taxes since your S-Corporation will be able to deduct the amount of its’ contribution to the pension.

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]]> https://aemctax.com/3-reasons-to-pay-a-higher-salary-as-a-s-corporation-owner/feed/ 0 3918 What Kind of Business Should Your Start-Up Be? https://aemctax.com/what-kind-of-business-should-your-start-up-be/ https://aemctax.com/what-kind-of-business-should-your-start-up-be/#respond Thu, 09 Dec 2021 00:30:39 +0000 https://aemctax2022.aemctax.com/2021/12/09/what-kind-of-business-should-your-start-up-be/ Now that you have made the decision to become an entrepreneur,  usually the next decision is determing the kind of business you will have.  Should your business be a C-Corporation, S-Corporation, or a Limited Liability Company?  These options each come with there own tax and legal implications that should be taken into consideration.   This […]

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Now that you have made the decision to become an entrepreneur,  usually the next decision is determing the kind of business you will have.  Should your business be a C-Corporation, S-Corporation, or a Limited Liability Company?  These options each come with there own tax and legal implications that should be taken into consideration.  

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]]> https://aemctax.com/what-kind-of-business-should-your-start-up-be/feed/ 0 2130 3 Steps to get from Start-Up to the Growth Phase of Business https://aemctax.com/3-steps-to-get-from-start-up-to-the-growth-phase-of-business/ https://aemctax.com/3-steps-to-get-from-start-up-to-the-growth-phase-of-business/#respond Thu, 09 Dec 2021 00:30:39 +0000 https://aemctax2022.aemctax.com/2021/12/09/3-steps-to-get-from-start-up-to-the-growth-phase-of-business/ Move your firm from start-up to growth…. Starting a business is one of the most exciting endeavors you could ever undertake, but starting is the easy part.  The challenge comes when you begin to seek ways of  growing your small  business.  Often the challenges and seeming road blocks you encounter can cause your excitement to […]

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Move your firm from start-up to growth….

Starting a business is one of the most exciting endeavors you could ever undertake, but starting is the easy part.  The challenge comes when you begin to seek ways of  growing your small  business.  Often the challenges and seeming road blocks you encounter can cause your excitement to quickly fizzle out and cause you to second guess why you started the business in the first place.  

This article offers three important steps that owners make take to easily move towards successfully growing their business and achieving the success they desire. 

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]]> https://aemctax.com/3-steps-to-get-from-start-up-to-the-growth-phase-of-business/feed/ 0 2134 6 Pitfalls Start-Ups can Avoid to Grow Beyond Your 1st Paying Customer https://aemctax.com/6-pitfalls-start-ups-can-avoid-to-grow-beyond-your-1st-paying-customer/ https://aemctax.com/6-pitfalls-start-ups-can-avoid-to-grow-beyond-your-1st-paying-customer/#respond Thu, 09 Dec 2021 00:30:39 +0000 https://aemctax2022.aemctax.com/2021/12/09/6-pitfalls-start-ups-can-avoid-to-grow-beyond-your-1st-paying-customer/ Are you a start-up owner who has just landed your first major client? Now you are probably thinking of hiring more employees, moving from your home office and taking on other expenses, but before you do…. Consider the following six major pitfalls in order to grow your business and move beyond the first client you […]

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]]> https://aemctax.com/6-pitfalls-start-ups-can-avoid-to-grow-beyond-your-1st-paying-customer/feed/ 0 2140 How to Properly Classify your Workers as Contractors or Employees https://aemctax.com/how-to-properly-classify-your-workers-as-contractors-or-employees/ https://aemctax.com/how-to-properly-classify-your-workers-as-contractors-or-employees/#respond Thu, 09 Dec 2021 00:30:29 +0000 https://aemctax2022.aemctax.com/2021/12/09/how-to-properly-classify-your-workers-as-contractors-or-employees/ Determining if a worker should be an employee or a contractor is based on a number of factors.  The following steps should be used in conjunction with each other to ensure your business will have a reasonable basis for classifying a worker as either an employee or an independent contractor if ever asked by the […]

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