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I've been in practice for several years, and I've always just been an LLC and my taxes are filed as a sole proprietor, with all appropriate schedules. It was recently suggested that I look into switching my business over to an S-Corp so I can pay myself an actual salary (he recommended on the low end of what the average is) and then I can give myself bonuses "for whenever you need extra cash, but you are only taxed on the base salary, and you still count all of your expenses".
I have two therapists who are working as independent contractors and they get a 1099, but I'm confused as to which way to go. How it is right now, I have a business and personal bank account. All expenses for my business come out of my business account, but I split up my deposits between my business and personal accounts, and basically whatever bills are coming up next, I pay. I am often transferring money from my business account to my personal, but I've never had anyone sit down and say "no, this is the best way to do it", so just wondering if anyone here has some advice.
Thanks in advance!
Yes and No.
As an S-Corp, you can make yourself an employee and pay yourself a salary, BUT
Thanks for the tips. I spoke with my accountant and he suggested I keep myself as an LLC, mainly for most of the reasons you listed.