The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

Independent divisions of S-corp

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

M-M

New Contributor
Aug 27, 2007
107
10
15
NC
I have an S-corp, of which I am the only employee. My CPA suggested that I should make my 2 new websites (which have nothing to do with the SC) divisions of the SC to avoid self-employment tax on the websites' revenue. Is that a good plan? Is there anything I need to look out for? Do I need to fire my CPA?

On the personal side, is it smart to make next month's mortgage payment late this year, and to go ahead and pay property taxes? I've heard both; would do the experts think?

Thank you.
 

Don't like ads? Remove them while supporting the forum. Subscribe.

Diane Kennedy

Bronze Contributor
Aug 31, 2007
795
209
49
I have an S-corp, of which I am the only employee. My CPA suggested that I should make my 2 new websites (which have nothing to do with the SC) divisions of the SC to avoid self-employment tax on the websites' revenue. Is that a good plan? Is there anything I need to look out for? Do I need to fire my CPA?
This is a great way to avoid Self-Employment. As long as there isn't any additional liability from adding these different "divisions" under one S Corp, it should be fine.


On the personal side, is it smart to make next month's mortgage payment late this year, and to go ahead and pay property taxes? I've heard both; would do the experts think?

Thank you.
Two different answers, because the real answer is "It Depends!"

Two things: (1) Do you itemize? (If not, doesn't matter either way) and (2) Are you subject to AMT this year? If you are - postpone the prop tax and state income tax estimated payment because it won't help. If you're not, prepay.
 
OP
OP
M

M-M

New Contributor
Aug 27, 2007
107
10
15
NC
Thank you, Diane. There shouldn't be any liabilities, and I am not subject to AMT.
 
OP
OP
M

M-M

New Contributor
Aug 27, 2007
107
10
15
NC
Thank you.
 

AroundTheWorld

Be in the Moment
Speedway Pass
Jul 24, 2007
2,909
1,874
550
.
Is there a quick and dirty way to figure out if you will be subject to AMT?
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Sponsored Offers

  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
New Course! Upwork Client Psychology I #UdemyApproved! Upwork Client Psychology I is...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Welcome to 2020, I wanted to add in a quick note about gratitude for the new year...


Don't like ads? Remove them while supporting the forum. Subscribe to become an INSIDER.

The 2020 Fastlane Summit

This event SOLD OUT in October. For authorized resale tickets, please check ticket resales or contact the forum directly.

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom