Many Businesses Operate as a S-Corp. There are dubious tax businesses that turn ALL BUSINESSES into S-Corps

They don t share the complexities of payroll, reasonable compensation, unemployment tax federal and NC, severe penalties for late filing, additional cost of all the extra ….perhaps unnecessary filings and fees. And the loss of hiring your own children and paying them for real work in your business LEGALLY TAX FREE! If under age 18. They don t share the multiple choices of tax deferral 401k, Simple IRA, Traditional IRA, 529 educational fund, Define Benefit Plan. These myopic often UNLICENSED S-Corp “puppy mills” seldom share family tax planning methods NOR do they explain that officers MUST receive a SALARY…. and that amount is not $5000 per year or $12000 or $36000 it s what it would cost to find someone to do the officers job. IRS agents …. many were born at night but none were born last night! The IRS has recognized the HUGE tax gap S-Corps are causing to Medicare and Social Security. So if you fall into that arena. As the song says “get ready cause here I come” For those who have an S-Corp AND have taken NO salary….please start saving extra money for the corrected tax adjustments, the accuracy penalties 20%, the interest now at 8% and late payment penalty 6%. Please contact your current person and have an in depth discussion as to the hazards of audit and how to properly operate your S-Corp. In one week past I have seen 3 businesses who were pushed into S-Corp status by their advisors! All three paid large fees, saved little or no tax, incurred penalties and many hours of filing rectification.