LLC Fit Review
“Your business may have grown—but has your structure grown with it?”
Many entrepreneurs start their companies as LLCs for simplicity and protection. But as your income increases, that same setup might start costing you more in taxes than it should. Knowing when to evaluate your entity type is one of the smartest moves you can make.
When It’s Time to Reconsider
If your profits have risen beyond $60,000 a year, switching from an LLC to an S-Corp might make sense. S-Corps allow owners to pay themselves a reasonable salary and take additional profits as distributions—often reducing self-employment taxes.
How QuickBooks Helps You Stay Ready
- Track owner draws vs. payroll correctly.
- Separate personal and business expenses clearly.
- Generate financial statements that show whether an S-Corp election makes sense.
A Chandler CPA can analyze your books, calculate potential savings, and help you decide if it’s time for a change. The Best CPA in Chandler (us!) walks business owners through every step—from paperwork to payroll setup.
The Bottom Line
The right structure protects your profits and simplifies your taxes. If it’s been more than a year since you reviewed your setup, it’s time to revisit it.
Need some help with your books? Call us at 480.747.3935 or set a time to talk with our CPA, Chris, at www.chrisbadulescu.com.
