How to Actually Save Tax With an S-Corp

So today we are talking about how to actually save tax with an escorp. Okay? Because if your escorp is set up wrong, the IRS can actually come back years later and take every dollar of those savings back. Okay? And of course, I'm going to show you a tax court case where a financial adviser thought he had done

everything right. He even consulted with an attorney and a CPA and he still ended up with over a $41,000 tax bill from the IRS actually removing the escorp tax treatment. Okay. Okay. So, today I'm going to break down the tax court case. I'm going to show you what he got wrong and show you how to actually save tax on

your S corporation. Okay. And I'm Jasmine Duchcci. I'm a tax attorney, CPA, and enrolled agent. Um, I love this stuff. This is my dream to just talk about tax in addition, of course, doing a lot of tax. Um, I work exclusively with business owners and, uh, this stuff is hard, so I like to go through it. As

corporations are by far one of the most common topics that that are out there. A lot of people speak about them online, but they're missing so much of the meat, so much of the more more important stuff. Um, and I always like to bring a court case with me so that you guys can

see how this actually works, like what to actually do, not just the social media stuff, but like this is how it is in real life. So, let's go through it. Awesome. So, okay. So, first, why would you even do an S corporation, right? Because I think online people will say if you're over $50,000 in net income,

you should do an S corporation. You're going to save so much in tax. And what ends up happening is a lot of people come to my office and there's all sorts of mistakes people will make. One of them is doing it doing an S corporation really early. Um because what ends up happening is oops, you don't save tax