When to switch from sole proprietor to S corp

Name: When to switch from sole proprietor to S corp
Duration: 62 s
Description: Switch to an S corp when you're making enough that the self-employment tax savings on profits outweigh the payroll requirements.

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Thinking about making the jump from sole proprietor to S corp? TJ explains the real reason tax pros recommend S corps — and the paycheck rule most people don't hear about. If you're making enough that you'd rather not pay self-employment tax on all of it, this lays out the basics of when the switch makes sense.

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