5 Ways Small Construction Businesses Can Save Money with Bookkeeping
Saving Cash with Bookkeeping for Contractors
As a small construction business owner, you spend most of your time on job sites, managing crews, and keeping projects on track. But let’s be real—keeping up with paperwork isn’t exactly your favorite part of the job. Ignoring your finances, though, can end up costing you a lot more than you think.
Good bookkeeping isn’t just about being organized—it helps you keep more of your hard-earned money. Here’s how:
1. Avoids Expensive Tax Mistakes
Ever scrambled at tax time to find receipts and paperwork? When your records are messy, you might pay more in taxes than you should or even face penalties.
How It Saves You Money:
Proper bookkeeping ensures you claim all your deductions, like:
Tools & equipment
Gas and vehicle expenses
Payments to subcontractors
Materials for jobs
Helps you avoid IRS fines and interest for mistakes or missing payments.
🔹 Example: A contractor didn’t track gas and supply costs and missed out on $10,000 in deductions, overpaying $2,500 in taxes! Later, an audit led to additional penalties that could have been avoided with proper records.
2. Keeps You from Wasting Money
Ever look at your account and wonder, Where did all my money go? Without tracking your spending, you could be throwing away cash on things you don’t need.
How It Saves You Money:
Helps you spot unnecessary spending, like unused subscriptions or overpaying for supplies.
Lets you negotiate better deals with vendors when you know exactly what you’ve been spending.
🔹 Example: A roofing company realized they were overpaying for materials by 15%. By switching suppliers, they saved $5,000 per year. They also discovered they were renting equipment every month when buying it would save them another $3,000 per year.
3. Prevents Late Fees & Overdrafts
Nothing is more frustrating than getting hit with a $250 late fee because you forgot to pay a bill. When money is tight, every dollar matters.
How It Saves You Money:
Helps you stay on top of payments to suppliers, subcontractors, and lenders—no more unnecessary fees.
Makes sure you have enough in your account so you’re not forced to use high-interest credit cards.
🔹 Example: A contractor missed a supplier payment, got charged a $250 late fee, and ended up paying $500 in interest over three months. Proper bookkeeping would’ve prevented that. Plus, paying on time helped them qualify for a discount, saving $1,200 per year.
4. Helps You Prepare for Slow Seasons
If you’ve been in construction for a while, you know that work slows down in the winter. The problem? Many contractors don’t plan ahead and struggle to pay their bills.
How It Saves You Money:
Helps you see how much cash you’ll need and set money aside during busier months.
Keeps you from relying on loans or credit cards when work is slow.
🔹 Example: A home renovation contractor saw business drop 40% every winter. By keeping track of their finances, they planned ahead and avoided dipping into personal savings. They also started offering small repair jobs in slow months, keeping money coming in year-round.
5. Saves Time (Which Means More Money!)
Let’s be honest—every hour spent on paperwork is an hour NOT spent making money. If you’re buried in receipts, you’re losing time that could be used for jobs.
How It Saves You Money:
Less time on bookkeeping means more time running projects and finding new clients.
No more last-minute stress at tax time, which reduces errors and missed deductions.
Outsourcing bookkeeping can free up hours every week, letting you focus on growing your business.
🔹 Example: A small plumbing business outsourced bookkeeping for $300/month but got 10+ hours back. This allowed them to take on one extra job per week, adding $20,000+ in revenue per year! They also used their records to find their most profitable services, helping them focus on higher-paying jobs.
Final Thoughts & Disclaimer
You work hard—don’t let messy finances drain your profits. When your money is managed well, you can:
✔ Pay less in taxes
✔ Cut out wasted spending
✔ Avoid unnecessary fees
✔ Take on more jobs and grow your business
Need Help with Your Bookkeeping?
Let’s make sure your money is working for you, not against you. Book a free consultation today and start keeping more of your hard-earned cash!
Disclaimer
This article is for informational purposes only and should not be considered financial, tax, or legal advice. Every business is different, so it’s best to speak with a professional before making financial decisions.
5 Cash Flow Challenges in Construction & How to Fix Them
Cash Flow Construction Companies
Introduction
Cash flow is one of the biggest challenges for small construction businesses. Many contractors find themselves struggling to cover material costs, pay their workers, and keep operations running smoothly while waiting on client payments. If you’ve ever found yourself in this situation, you’re not alone.
In this blog, we’ll explore five common cash flow challenges construction businesses face and practical solutions to overcome them. Through a conversation between two contractors, John and Lisa, you’ll get real-world insights into managing late payments, covering upfront costs, surviving seasonal slowdowns, improving job costing, and getting paid on time. Let’s dive in!
A Conversation Between Two Contractors
Delayed Payments from Clients
John (Remodeling Contractor): Man, cash flow has been killing me lately. I finished a big kitchen remodel two months ago, and I’m still waiting to get paid. Meanwhile, my bills don’t stop coming.
Lisa (Roofing Contractor): I hear you. Waiting on clients to pay is the worst. I had a roofing job last year where the homeowner dragged out payment for three months—I was stuck covering materials and payroll out of pocket.
John: Yeah, I can’t afford to do that anymore. What do you do to avoid this mess?
Lisa: A few things. First, I don’t start a project without a deposit—usually 30% upfront—and then I bill in progress payments at key project milestones. That way, I’m never floating all the costs.
John: That’s smart. I’ve been waiting until the job is done to get paid. No wonder I’m struggling.
Lisa: You should also consider offering early payment discounts—maybe knock off 5% if they pay within 10 days. Clients like saving money, and you get your cash faster.
John: That makes sense. What about the clients who just won’t pay on time?
Lisa: That’s where invoice factoring comes in. If I ever have a really late invoice, I sell it to a factoring company, and they give me 80% upfront while they chase down the rest. It’s not ideal, but it keeps my cash flow moving.
Covering Upfront Costs Without Going Broke
John: Okay, that helps with slow payments, but what about materials? I had to put almost $20,000 on my personal credit card just to get started on a recent project.
Lisa: Ouch. You’re not using supplier credit?
John: No. Didn’t know that was an option.
Lisa: Oh, absolutely! Most suppliers offer Net-30 or Net-60 terms, so you can get materials now and pay later. I negotiated Net-45 terms with my supplier, which means I have a month and a half before I even have to think about paying them.
John: That would change everything. What if I don’t qualify for that yet?
Lisa: Then open a business line of credit. I got a $25,000 credit line through my bank, and I only use it when I have to cover upfront costs. That way, I’m not dipping into my personal savings.
John: Alright, I need to start doing that.
Surviving the Slow Season
John: What do you do when business slows down? December through February is brutal for me.
Lisa: Oh yeah, winter’s tough. I plan for it. In my busy months, I set aside 15% of my profits into a separate account. That way, when work slows down, I’m not panicking about payroll.
John: I should’ve done that last year. I barely made it through.
Lisa: You can also offer seasonal services to keep cash flowing. I do gutter cleaning and small home repairs in the winter—it’s not my main thing, but it helps.
John: Maybe I could start promoting off-season discounts—book a project in January and get a deal.
Lisa: Exactly! That keeps work coming in when things are slow.
Fixing Bad Bidding & Costing Mistakes
John: You ever completely misprice a job and end up losing money?
Lisa: Oh, definitely. I underbid a big roofing project last year and lost $5,000. That’s when I started using job costing software.
John: What does that do?
Lisa: It helps me track materials, labor, and overhead in real-time. Now, when I price a job, I know my numbers are right.
John: I just kind of guess based on past jobs.
Lisa: That’s risky. You should also build in a 10% contingency on every job. That way, if something unexpected comes up, you’re covered.
John: That would’ve saved me a ton of stress.
Getting Paid On Time—Every Time
John: One last thing—how do you deal with late payments? I feel like I spend more time chasing invoices than actually working.
Lisa: I’ve been there. First, I changed my contract terms to Net-15 instead of Net-30. That way, I’m getting paid faster.
John: That works?
Lisa: Yes, and I also automate my invoices with FreshBooks. The system sends reminders at 7, 14, and 21 days overdue—so I don’t have to nag people manually.
John: I like that.
Lisa: Oh, and I accept credit cards and ACH transfers now. Makes it super easy for clients to pay right away.
John: That’s a game-changer. I’m definitely making some changes.
Final Thoughts
Lisa: Look, cash flow problems will never completely disappear, but if you require deposits, negotiate supplier credit, plan for slow months, price jobs right, and get paid faster, you’ll be in a much better position.
John: I appreciate all of this. Time to rethink how I run my business.
If you’re ready to take control of your construction business finances, we can help! Book a consultation today or sign up for our newsletter to receive expert financial tips tailored for contractors. Click here to schedule an appointment or subscribe for more insights!
Bookkeeping for Plumbers: Do You Really Need It?
Plumber Saving Money on Taxes
The Daily Grind of a Plumber
Hey there, plumber! Do you own your own small plumbing business or are you a solo operation with your own van? I know you’d rather be fixing pipes than crunching numbers, but let’s talk about something that could save you a ton of stress (and money). If you’re not keeping track of your income and expenses, you might be working harder than you need to—without seeing the full reward.
The Hidden Money Drain
A lot of plumbers take the "money-in, money-out" approach. You get paid for a job, you buy materials, cover gas, and keep the rest. But here’s the thing—if you don’t know exactly where your money is going, you might be barely breaking even without realizing it. And when tax season rolls around? You could be overpaying the IRS simply because you didn’t track your deductions properly.
A Story About Missed Savings
Let’s talk about Mike. He had been running his own plumbing business for five years and felt like he was doing well. He always had jobs lined up, and his bank account seemed to stay afloat. But every tax season, it felt like he was getting punched in the gut. The tax bill always seemed way higher than he expected.
One year, Mike decided to finally take a closer look at his books. He realized he wasn’t keeping track of his business expenses beyond tossing receipts in his glovebox. After working with a bookkeeper, he discovered he could write off all the gas he used driving to jobs, the tools he bought throughout the year, his work clothes, and even marketing expenses. After properly tracking his deductions, he found $18,000 in overlooked expenses. When tax season came, he saved over $5,000 in tax payments—money that stayed in his pocket instead of going to the IRS. And the best part? Now that he keeps up with his books regularly, tax season is no longer a nightmare.
The Cost of Ignoring Your Books
If you’re like Mike and you’re just guessing at your numbers, you might be losing thousands of dollars a year. Not only that, but you’re also making your life harder. Imagine knowing exactly how much money you need to set aside for taxes every quarter instead of waiting for an accountant to tell you at the last minute. Imagine having organized records so if you ever need a business loan, you can apply with confidence instead of scrambling to prove your income.
The Benefits of Proper Bookkeeping
Tax Savings: Tracking expenses properly ensures you claim every deduction available to you—tools, fuel, equipment, and marketing.
Better Business Decisions: With accurate records, you can see which jobs are making you the most money and where you're overspending.
Easier Tax Filing: No more scrambling at tax time—your numbers are already organized and ready to go.
Access to Loans & Credit: A clean bookkeeping system makes it easier to qualify for business loans or lines of credit.
Avoiding IRS Issues: Properly tracking finances protects you in case of an audit and helps avoid penalties.
How to Take Control of Your Bookkeeping
So how do you stay on top of your bookkeeping?
You have two choices. You can spend a little time each week keeping track of your numbers, or you can hire someone to do it for you. Either way, having a system in place is what separates the plumbers who are just getting by from the ones who are thriving and growing their businesses without financial stress.
Let’s Make Your Finances Work for You
If you’re tired of wondering where your money is going and dreading tax time, let’s chat. I specialize in bookkeeping and tax services for plumbers, and I’d love to help you keep more of your hard-earned cash. Book a free consultation today and let’s get your finances working for you instead of against you.
Disclaimer
This article is for informational purposes only and should not be considered financial, tax, or legal advice. Every plumbing business is unique, and tax laws change frequently. To get personalized advice based on your specific situation, schedule a free consultation today.
Should Small Contractors Elect S-Corp Status? A Guide to Tax Savings and Benefits
Should a Small Contractor Elect S-Corp Status?
Saving Money on Payroll Taxes for Contractors
As a small business owner, especially if you're a contractor, understanding tax strategies can have a huge impact on your bottom line. One option worth exploring is electing to have your business taxed as an S-Corporation (S-Corp). It’s a decision that could save you money on taxes, but it’s not for everyone. Let’s break it down in plain English so you can decide if it’s the right move for your business.
What Is the S-Corp Election, Anyway?
First, let’s clear up a common misunderstanding. An S-Corp isn’t a type of business entity like an LLC or corporation—it’s a tax election. If you’re operating as an LLC or a corporation, you can choose how you want to be taxed: as a C-Corp or an S-Corp. Unfortunately, sole proprietors don’t have this option; they’re automatically taxed under the default rules.
Why do people consider the S-Corp election? One word: savings. Specifically, it can help reduce the self-employment taxes that small business owners pay. But like most things with taxes, it’s not as simple as it sounds.
When Does an S-Corp Election Make Sense?
Here are a few key situations where choosing S-Corp status could work in your favor:
You’re Making Good Money
If your net profit is at least $60,000 a year, the math might work in your favor. Below that, the additional costs of running an S-Corp—like payroll and extra tax prep—might eat up any savings.You Want to Cut Down on Self-Employment Tax
Normally, as a self-employed individual, you pay a 15.3% self-employment tax on all your business income. With an S-Corp, you only pay this tax on the "reasonable salary" you pay yourself. The rest of your profits can be taken as distributions, which aren’t subject to self-employment tax. For example:If your business makes $100,000 in profit and you pay yourself a $40,000 salary, you only pay self-employment taxes on that $40,000. That’s a big savings compared to paying on the full $100,000.
You’re Okay with Paying Yourself a Reasonable Salary
The IRS requires you to pay yourself a fair salary, meaning what you’d pay someone else to do your job. Set it too low, and the IRS might take notice. Set it too high, and you’ll lose the tax savings.
When Might an S-Corp Not Be Worth It?
The S-Corp election isn’t a magic solution for everyone. Here are some scenarios where it might not make sense:
You’re Not Making Enough
If your net profit is less than $60,000, the costs of maintaining an S-Corp might outweigh any potential savings.You Already Have High W-2 Income
If you’re earning a significant salary from another job and already maxing out your Social Security taxes, electing S-Corp status might not save you money—it might even cost you extra.State Tax Laws Complicate Things
Some states don’t recognize the S-Corp election or impose additional taxes on S-Corp profits. If you’re in a state like New York, Tennessee, or New Hampshire, this could erase your potential savings.Your Income Is Passive
If most of your income is from passive activities like rental real estate, there’s no self-employment tax to avoid. An S-Corp election could unnecessarily complicate things.Additional Costs Turn You Off
Running an S-Corp involves extra costs: payroll services (around $50/month), accounting fees, and additional tax filings. The total cost could range from $2,000 to $3,000 per year. If that feels like too much, it might not be the right fit.
Extra Tax Benefits of S-Corps
If the numbers work in your favor, S-Corps can unlock even more tax-saving strategies:
Reimburse Yourself for Expenses: With the right plan in place, you can reimburse yourself for things like home office expenses, travel, and health insurance.
Host Board Meetings: If you hold board meetings (even at home), you can deduct expenses like meals, lodging, and even charge rent to your S-Corp for using your house (up to 14 days per year).
Retirement Plans: S-Corps make it easy to set up tax-deductible retirement plans like a solo 401(k).
Fringe Benefits: You can offer benefits like dependent care or tuition reimbursement, which are deductible for the business.
What Should Contractors Consider?
Contractors, in particular, face challenges like fluctuating income and unpredictable cash flow. An S-Corp can help smooth things out by reducing self-employment taxes and making tax planning more manageable. But the tradeoff is added complexity—you’ll probably need to work with a CPA to make it all work.
Key Takeaways
An S-Corp election can save you money, but only if the numbers make sense.
It’s generally worth considering if your business nets at least $60,000 a year.
Watch out for costs, state-specific rules, and IRS requirements like paying yourself a reasonable salary.
Beyond tax savings, S-Corps can offer other perks like expense reimbursements and retirement plans.
Conclusion
Deciding whether to elect S-Corp status isn’t a one-size-fits-all decision. It depends on your business’s profit, your personal tax situation, and your willingness to deal with some extra complexity. For many contractors, the tax savings are worth it. But for others, the costs might outweigh the benefits. When in doubt, consult a CPA (like me!) who can help you crunch the numbers and make the best choice for your business.
If you’re curious about how the S-Corp election could benefit your business, why not take the next step? Sign up for my tax newsletter to get regular insights and tips tailored to small business owners and contractors. And if you’re ready to dive deeper, schedule a free consultation today—we can discuss your specific situation and see if an S-Corp election makes sense for you. Let’s work together to make your business as tax efficient as possible!
Disclaimer
This article is for informational purposes only and does not constitute tax advice. The benefits and drawbacks of an S-Corp election depend on individual circumstances, and a thorough analysis of your specific financial situation is necessary to determine if it will save you money. Always consult a qualified tax professional for personalized advice.
How Plumbing Businesses Can Save on Taxes with S-Corp Election
Save on Taxes as a Plumbing Business
Save on Taxes as a Plumbing Business: Should You Elect S-Corp Status?
As a plumbing business owner, you already juggle a lot—managing jobs, scheduling, inventory, and customer service. But did you know that choosing the right tax strategy can significantly impact your bottom line? One option worth exploring is electing to have your business taxed as an S-Corporation (S-Corp). This decision could save you thousands in taxes, but it’s not a one-size-fits-all solution. Let’s break it down in plain English to help you decide if it’s right for your plumbing business.
What Is the S-Corp Election?
First, let’s clear up a common misunderstanding. An S-Corp isn’t a type of business entity like an LLC or corporation—it’s a tax election. If you’re operating as an LLC or a corporation, you can choose to be taxed as a C-Corp or an S-Corp. Unfortunately, sole proprietors don’t have this option; they’re automatically taxed under the default rules.
Why do plumbing business owners consider the S-Corp election? One word: savings. Specifically, it can help reduce the self-employment taxes that eat into your hard-earned profits. But like everything with taxes, it’s not as simple as it sounds.
When Does an S-Corp Election Make Sense for Plumbers?
Here are some scenarios where choosing S-Corp status could work in your favor:
You’re Turning a Solid Profit
If your net profit is at least $60,000 a year, the math might work in your favor. Below that, the additional costs of running an S-Corp—like payroll and extra tax prep—might eat up any savings.
You Want to Reduce Self-Employment Tax
Plumbing contractors, like most small business owners, pay a 15.3% self-employment tax on all business income. With an S-Corp, you only pay this tax on the "reasonable salary" you pay yourself. The rest of your profits can be taken as distributions, which aren’t subject to self-employment tax. For example:
If your business profits $100,000 and you pay yourself a $40,000 salary, you only pay self-employment tax on $40,000. This can save you thousands compared to paying self-employment tax on the full $100,000.
You’re Comfortable with Payroll Rules
The IRS requires you to pay yourself a reasonable salary, meaning what you’d pay someone else to do your job. Set it too low, and the IRS might scrutinize your return. Set it too high, and you’ll miss out on tax savings.
When Might an S-Corp Not Be Worth It for Plumbing Businesses?
Here are some situations where it might not make sense:
You’re Just Starting Out or Not Profitable Enough
If your net profit is less than $60,000, the extra costs of maintaining an S-Corp might outweigh any potential savings.
You Already Have a High W-2 Income
If you have a second job and earn a high salary, you might already be maxing out your Social Security taxes. In this case, an S-Corp might not save you money.
Your State’s Rules Complicate Things
Some states, like New York and Tennessee, don’t recognize the S-Corp election or impose additional taxes on S-Corp profits. Be sure to check how your state treats S-Corps before deciding.
You Don’t Want the Extra Costs
Running an S-Corp involves additional expenses, such as payroll services, accounting fees, and separate tax filings. The total cost can range from $2,000 to $3,000 annually.
Extra Tax Benefits of S-Corps for Plumbing Businesses
If the numbers work in your favor, S-Corps can unlock even more tax-saving strategies:
Expense Reimbursements: Deduct home office expenses, travel, and even health insurance if you structure it properly.
Retirement Savings: Set up a tax-deductible solo 401(k) or other retirement plan.
Board Meeting Deductions: Deduct expenses for meetings and even charge your S-Corp rent for using your home office up to 14 days per year.
Fringe Benefits: Offer dependent care or tuition reimbursement, which are deductible for the business.
What Plumbers Should Keep in Mind
As a plumber, your income might fluctuate with the seasons or depend on how many jobs you land each month. The S-Corp structure can help stabilize your tax liabilities by reducing self-employment taxes and making tax planning more predictable. However, the tradeoff is added complexity—you’ll likely need to work with a CPA to handle payroll, tax filings, and compliance.
Key Takeaways for Plumbing Businesses
An S-Corp election could save you money, but it only works if your business is netting at least $60,000 annually.
Be prepared for additional costs, IRS rules about "reasonable salary," and state-specific regulations.
Beyond tax savings, S-Corps can provide benefits like retirement plans and reimbursable expenses.
Ready to Explore Your Tax Options?
Deciding whether to elect S-Corp status isn’t a one-size-fits-all decision. It depends on your plumbing business’s profit, your personal tax situation, and your willingness to handle some added complexity. For many plumbers, the tax savings are well worth it. For others, the costs and effort might outweigh the benefits.
If you’re curious about how the S-Corp election could benefit your plumbing business, let’s chat! Schedule a free consultation today to discuss your situation and see if an S-Corp election makes sense for you. Together, we can make your business as tax-efficient as possible.
Disclaimer: This article is for informational purposes only and does not constitute tax advice. Always consult a qualified tax professional for personalized recommendations.
How HVAC Businesses Can Save on Taxes with an S-Corp Election
Save on Taxes as an HVAC Business: Should You Elect S-Corp Status?
As an HVAC business owner, you already manage a lot—scheduling jobs, maintaining equipment, handling customers, and ensuring your team stays efficient. But did you know that choosing the right tax strategy can significantly impact your bottom line? One option worth exploring is electing to have your business taxed as an S-Corporation (S-Corp). This decision could save you thousands in taxes, but it’s not a one-size-fits-all solution. Let’s break it down in plain English to help you decide if it’s right for your HVAC business.
What Is the S-Corp Election?
First, let’s clear up a common misunderstanding. An S-Corp isn’t a type of business entity like an LLC or corporation—it’s a tax election. If you’re operating as an LLC or a corporation, you can choose to be taxed as a C-Corp or an S-Corp. Unfortunately, sole proprietors don’t have this option; they’re automatically taxed under the default rules.
Why do HVAC business owners consider the S-Corp election? One word: savings. Specifically, it can help reduce the self-employment taxes that eat into your hard-earned profits. But like most things with taxes, it’s not as simple as it sounds.
When Does an S-Corp Election Make Sense for HVAC Companies?
Here are some scenarios where choosing S-Corp status could work in your favor:
Your Business Is Profitable
If your net profit is at least $60,000 a year, the math might work in your favor. Below that, the additional costs of running an S-Corp—like payroll and extra tax prep—might eat up any savings.
You Want to Reduce Self-Employment Tax
HVAC contractors, like most small business owners, pay a 15.3% self-employment tax on all business income. With an S-Corp, you only pay this tax on the "reasonable salary" you pay yourself. The rest of your profits can be taken as distributions, which aren’t subject to self-employment tax. For example:
If your business profits $100,000 and you pay yourself a $40,000 salary, you only pay self-employment tax on $40,000. This can save you thousands compared to paying self-employment tax on the full $100,000.
You’re Comfortable with Payroll Rules
The IRS requires you to pay yourself a reasonable salary, meaning what you’d pay someone else to do your job. Set it too low, and the IRS might scrutinize your return. Set it too high, and you’ll miss out on tax savings.
When Might an S-Corp Not Be Worth It for HVAC Companies?
Here are some situations where it might not make sense:
You’re Just Starting Out or Not Profitable Enough
If your net profit is less than $60,000, the extra costs of maintaining an S-Corp might outweigh any potential savings.You Already Have a High W-2 Income
If you have a second job and earn a high salary, you might already be maxing out your Social Security taxes. In this case, an S-Corp might not save you money.Your State’s Rules Complicate Things
Some states, like New York and Tennessee, don’t recognize the S-Corp election or impose additional taxes on S-Corp profits. Be sure to check how your state treats S-Corps before deciding.You Don’t Want the Extra Costs
Running an S-Corp involves additional expenses, such as payroll services, accounting fees, and separate tax filings. The total cost can range from $2,000 to $3,000 annually.
Extra Tax Benefits of S-Corps for HVAC Businesses
If the numbers work in your favor, S-Corps can unlock even more tax-saving strategies:
Expense Reimbursements: Deduct home office expenses, travel, and even health insurance if you structure it properly.
Retirement Savings: Set up a tax-deductible solo 401(k) or other retirement plan.
Board Meeting Deductions: Deduct expenses for meetings and even charge your S-Corp rent for using your home office up to 14 days per year.
Fringe Benefits: Offer dependent care or tuition reimbursement, which are deductible for the business.
What HVAC Businesses Should Keep in Mind
As an HVAC business owner, your income might vary with seasonal demand or large projects. The S-Corp structure can help stabilize your tax liabilities by reducing self-employment taxes and making tax planning more predictable. However, the tradeoff is added complexity—you’ll likely need to work with a CPA to handle payroll, tax filings, and compliance.
Key Takeaways for HVAC Businesses
An S-Corp election could save you money, but it only works if your business is netting at least $60,000 annually.
Be prepared for additional costs, IRS rules about "reasonable salary," and state-specific regulations.
Beyond tax savings, S-Corps can provide benefits like retirement plans and reimbursable expenses.
Ready to Explore Your Tax Options?
Deciding whether to elect S-Corp status isn’t a one-size-fits-all decision. It depends on your HVAC business’s profit, your personal tax situation, and your willingness to handle some added complexity. For many HVAC professionals, the tax savings are well worth it. For others, the costs and effort might outweigh the benefits.
If you’re curious about how the S-Corp election could benefit your HVAC business, let’s chat! Schedule a free consultation today to discuss your situation and see if an S-Corp election makes sense for you. Together, we can make your business as tax-efficient as possible.
Disclaimer: This article is for informational purposes only and does not constitute tax advice. Always consult a qualified tax professional for personalized recommendations.
Why Gusto is the Best Payroll Solution for Small Contractors in 2025
Payroll for Small Contractors
Why Gusto is My Top Pick for Small Contractors
Managing payroll and HR tasks can feel overwhelming for small contractors, especially when you're juggling multiple projects and deadlines. After researching various payroll solutions, Gusto stood out as my number one choice for small contractors—and for good reason. Known for its reliability and user-friendly design, Gusto simplifies payroll, benefits, and HR tasks so you can focus on growing your business.
Let’s dive into why Gusto could be the perfect fit for your contracting business.
A Payroll Solution You Can Count On
One of the best things about Gusto is how easy it makes payroll processing. Imagine being able to run payroll from anywhere—whether you're at a job site, home office, or even on the go. With Gusto, you can pay employees via direct deposit or paper checks, all on your schedule. No more stressing over payroll deadlines or manual calculations!
Time Tracking Made Simple
If you’ve got a crew working with you, ensuring they’re paid accurately for their hours is critical. Gusto’s built-in time-tracking tool integrates seamlessly with payroll, helping you avoid compliance issues while ensuring fair pay. This feature is particularly useful when you're tracking work hours across different job sites.
Competitive Benefits Without the Hassle
Attracting and retaining good talent can be tough, especially in today’s market. Gusto makes offering employee benefits, like health insurance and retirement plans, straightforward and hassle-free. With their easy-to-manage packages, you can provide competitive perks that help you build a strong, reliable team.
Tax Compliance You Can Trust
Taxes can be a headache for anyone, but Gusto takes the stress out of it. Their automated system handles all your tax filings and payments, including federal, state, and local taxes. Plus, they provide detailed payroll reports, making it easier to keep track of expenses and stay compliant with labor laws. You can rest easy knowing Gusto has your back.
Designed with Small Contractors in Mind
Gusto’s platform is simple to set up and use, even if you’re not a tech wizard. The clean interface makes managing payroll and benefits straightforward, so you can get everything done without wasting valuable time. And if you ever run into issues, their customer support team is just a phone call or email away during business hours.
Is Gusto Right for You?
If you’re a small contractor looking for an affordable, user-friendly payroll solution, Gusto might be exactly what you need. It’s particularly great for businesses that want to streamline payroll, manage benefits, and stay on top of tax compliance. Whether you’re managing a small team or working solo, Gusto’s tools are designed to help you work smarter, not harder.
A Few Things to Keep in Mind
While Gusto has plenty to offer, there are a few limitations. It’s not the best option for larger businesses with complex needs, like multiple locations or over 100 employees. Also, its customer support hours are limited, and some users find the response times a bit slow. Finally, while Gusto integrates with many tools, it might not connect with everything you use, so make sure to double-check compatibility.
The Bottom Line
For small contractors, Gusto offers an affordable and reliable payroll solution that simplifies HR tasks and ensures tax compliance. It’s easy to use, packed with helpful features, and designed to help your business run more smoothly. If you’re ready to spend less time on administrative tasks and more time on your projects, Gusto could be the tool you’ve been looking for.
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The Ultimate Guide to Choosing the Best Invoicing Tools for Small Contractors
Intro
Invoicing is crucial for small contractors. It ensures that you are paid for your work, helps maintain clear financial records, and improves cash flow. Invoicing also helps clients understand what they are being charged for, which can prevent misunderstandings and build trust between both parties.
There are many tools to choose from when implementing invoicing, and it is important to choose the right software that saves time and maximizes efficiency for your business.
Section 1: What Makes a Good Invoicing System?
Ease of Use: Contractors need simple, intuitive systems that save time.
Customizability: Ability to add branding (logos, colors) and tailor invoices to specific jobs.
Payment Integration: Options for clients to pay online (credit card, ACH, etc.).
Automation: Features like recurring invoices and payment reminders.
Cost-Effectiveness: Value for money, especially for small businesses with tight budgets.
Ease of Use
Contractors need a simple and intuitive system that saves time. This is also important for when you step away from day-to-day operations. Having software that is easy to use will be essential because it simplifies training new team members.
Customizability
The ability to add your logo and branding to invoices makes your business look more professional and gives clients confidence in the value of your services.
Payment Integration
Offering clients multiple payment options—such as credit card, ACH, and PayPal—makes it easier for them to pay, which helps lower accounts receivable and improves cash flow.
Automation
Automation works wonders for small contractors. Features like recurring invoices and payment reminders save precious time and ensure you stay on top of payments without constant follow-ups.
Cost-Effectiveness
Rather than looking for the cheapest option, focus on value. Choose a tool that balances cost with functionality to avoid overspending or sacrificing essential features.
Section 2: Popular Invoicing Options for Small Contractors
1. QuickBooks Online
Why It’s Great: All-in-one accounting and invoicing.
Best For: Contractors who want integrated bookkeeping.
Highlight: Tracks project profitability alongside invoicing.
2. Wave
Why It’s Great: Free for invoicing and accounting.
Best For: Budget-conscious contractors.
Highlight: Professional invoices at no cost.
3. Jobber
Why It’s Great: Built specifically for home service businesses.
Best For: Contractors needing job scheduling and invoicing.
Highlight: Mobile-friendly with quoting and payment tracking.
4. FreshBooks
Why It’s Great: User-friendly with time-tracking features.
Best For: Contractors who bill by the hour.
Highlight: Easily integrates time logs into invoices.
5. Square Invoices
Why It’s Great: Transparent pricing and flexibility.
Best For: Contractors already using Square for payments.
Highlight: Recurring billing and real-time tracking.
Section 3: Factors to Consider When Choosing an Invoicing Tool
1. Your Business Size and Complexity
Small operations may need simpler tools (e.g., Wave or PayPal).
Larger contractors or those with employees may benefit from robust platforms (e.g., QuickBooks or Jobber).
2. Type of Services You Offer
Hourly work: The time-tracking features in FreshBooks might be the most valuable option.
Project-based work: Platforms that can handle quotes and estimates will make the most sense (e.g., Jobber).
3. Budget
Free options like Wave may shine for smaller businesses, whereas larger budgets might justify platforms like QuickBooks.
4. Payment Flexibility
Tools that offer installment options, credit cards, and ACH payments all in one (e.g., Square) provide convenience for both contractors and clients.
Section 4: Benefits of Choosing the Right Invoicing Tool
Save Time: Automate repetitive tasks like sending reminders.
Get Paid Faster: Offer convenient payment methods to reduce delays.
Enhance Professionalism: Present polished, branded invoices.
Improve Organization: Keep all financial data in one place for tax time.
Section 5: Conclusion
Choosing the right invoicing tool is a vital step for small contractors aiming to save time, get paid faster, and improve overall efficiency. By considering factors like your business size, the services you offer, and your budget, you can find a solution that meets your needs and supports your growth.
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Top 5 Payroll Software Solutions for Small General Contractors
Best Payroll Software Solutions for Contractors
Are you a small general contractor looking to grow and hire employees? If so, I am going to do a deep dive into the best payroll software options below to help you select the right one for your business! Managing payroll effectively is essential for ensuring accurate employee and subcontractor payments, staying compliant with regulations, and saving valuable time on bookkeeping tasks. Let’s explore the top payroll solutions tailored to your needs.
1. Gusto
If you’re looking for a user-friendly payroll solution that does it all, Gusto is a fantastic option. It automates payroll management, including tax filings, and offers tools to handle benefits like health insurance and retirement plans. Gusto’s intuitive dashboard also makes tracking time and managing contractor payments straightforward.
Notably, Gusto supports 1099 payments, making it easy to manage both employees and subcontractors. Pricing starts at $40 per month, plus $6 per person, making it an affordable and straightforward choice for small businesses. If simplicity and ease of use are your priorities, Gusto is definitely worth considering.
2. QuickBooks Payroll
For contractors already using QuickBooks for accounting, QuickBooks Payroll is an excellent choice. This software offers seamless integration with QuickBooks, automates payroll processes, and supports both 1099 contractors and W-2 employees. It also tracks workers’ compensation and generates 1099 forms at year-end, streamlining subcontractor payments.
QuickBooks Payroll starts at $45 per month, plus $4 per person. It’s ideal for those who want to combine payroll and accounting into one efficient system. One standout feature is how much time it saves during bookkeeping, especially with automated journal entries. This is a must-have if you’re looking for efficiency and a familiar tool.
3. Payroll4Construction
If you’re looking for a payroll solution specifically designed for the construction industry, Payroll4Construction is a strong contender. This software handles complex needs like managing multiple jobs, locations, unions, and varying pay rates.
It automates certified payroll reporting and prevailing wage rates, making it ideal for contractors working on government projects. Payroll4Construction simplifies subcontractor payments with 1099 tracking and reporting tools. Pricing is customized based on your business needs, but its industry-specific features make it a top choice for construction businesses with intricate payroll requirements.
4. ADP Payroll
ADP Payroll is a versatile option for businesses with more complex HR and payroll needs. It offers tools for managing union wages, benefits, and flexible payment options like direct deposit and pay cards. ADP’s contractor payment tools ensure 1099 subcontractors are paid accurately and on time, with automatic generation of necessary tax forms.
The software is scalable and includes employee self-service portals for easy access to pay stubs and tax documents. Pricing is quote-based and may be higher than other options, but its robust HR tools and excellent customer support make it a reliable choice for growing contractors.
5. eBacon
eBacon is designed with compliance in mind, making it ideal for contractors dealing with certified payroll requirements. This software automates payroll processing, certified reporting, and compliance management for prevailing wage and labor laws. It also includes features for streamlined subcontractor payments, such as 1099 generation and tracking.
Detailed reporting capabilities for audits and integration with time-tracking systems make eBacon a strong choice for contractors handling government contracts. Pricing is available upon request, and while it’s more focused on compliance than general payroll features, it’s a great fit for contractors needing specialized tools.
Conclusion
Choosing the best payroll software for your business depends on your specific needs, budget, and the complexity of your payroll processes. For small contractors seeking simplicity and affordability, Gusto and QuickBooks Payroll are excellent choices. Personally, I recommend these two because of their price points, ease of use, and time-saving features—especially QuickBooks Payroll, which integrates seamlessly into the bookkeeping process with automated journal entries.
If you need industry-specific features like certified payroll reporting, Payroll4Construction and eBacon are standout options tailored to the construction industry. Finally, ADP Payroll provides a comprehensive, scalable solution for contractors with more complex HR and payroll needs. Take advantage of free trials or demos to explore which solution works best for your business.
About Me
I’m Peyton Witt, a CPA and the owner of Tax Pilot, LLC. I specialize in helping tradespeople, contractors, and small business owners streamline their tax and bookkeeping processes. With years of experience and a passion for helping small businesses succeed, I can help you navigate your payroll and tax needs with ease.
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Payroll for Contractors
Thriving in the Lifestyle Business Era: Generational Shifts, Post-COVID Trends, and Strategic Opportunities
What is a Lifestyle Business?
A lifestyle business is one that prioritizes the entrepreneur's personal goals and quality of life over aggressive growth or financial benchmarks. Unlike traditional businesses, which often emphasize scalability and profit maximization, lifestyle businesses are designed to create a harmonious balance between work and life. Examples of industries that naturally align with this concept include wellness coaching, photography, and digital enterprises.
Why Do These Industries Work Well for Lifestyle Businesses?
The answer lies in flexibility. When you own your own business, you have the power to set your schedule to align with your priorities, creating a work environment that supports, rather than detracts from, your life.
The Pandemic's Influence on Lifestyle Businesses
The COVID-19 pandemic acted as a catalyst for entrepreneurship. Many people launched businesses for various reasons, from necessity to the pursuit of long-held passions. This period also marked a cultural shift, especially among younger generations, who began emphasizing work-life balance, flexibility, and personal fulfillment.
Why Am I Writing This Article?
I firmly believe that lifestyle businesses represent the best way to work. The generational differences and trends emerging post-COVID have created opportunities that were unimaginable just a few decades ago. My goal is to help like-minded individuals thrive in this business model by providing accounting expertise tailored to their unique needs and aspirations. I believe that for a lifestyle business to succeed, its network—employees, clients, and advisors—must understand its owner's values and motivations.
Generational Differences in Lifestyle Businesses
Each generation approaches lifestyle businesses with its own set of values, preferences, and challenges. Understanding these differences is key to supporting them effectively:
Baby Boomers
As they enter retirement, many Baby Boomers seek purpose-driven ventures. These include hobby-based businesses or consulting roles that leverage their extensive experience. For example, someone might leave a corporate job to run a fishing charter, combining a love of fishing with income generation.
Generation X
Often viewed as the bridge between traditional and modern entrepreneurship, Gen X values family-friendly businesses that allow them to spend more time with their children. They frequently use their professional expertise to create ventures that align with their family goals.
Millennials
As digital natives, Millennials excel in online and social media-based businesses. They prioritize flexibility, creativity, and meaningful work. This generation drove the work-from-home trend that persisted long after the pandemic's peak. Popular industries among Millennials include e-commerce, fitness, and wellness.
Gen Z
The youngest entrepreneurs are tech-savvy, sustainability-focused, and highly adaptable. Gen Z thrives on trends such as influencer marketing and content creation. Their ability to quickly adopt new technologies positions them as leaders in the creator economy.
Post-COVID Trends Impacting Lifestyle Businesses
Several trends that emerged post-COVID have reshaped the landscape of small businesses:
Remote Work and Digital Nomadism
While remote work appeared to be a permanent shift during the pandemic, many corporations have since reversed their stance. This has driven individuals to create businesses that allow them to retain control over their schedules and work environments.
Health and Wellness Boom
Interest in health and wellness businesses, including yoga, fitness coaching, and mental health services, has surged. Generational shifts are driving this trend, with younger generations prioritizing physical and mental well-being far more than their predecessors.
Focus on Sustainability
Eco-friendly and socially conscious businesses are gaining traction, reflecting a broader societal focus on sustainability. This trend offers unique opportunities for lifestyle business owners to align their values with their work.
E-commerce Explosion
The growth of online retail and subscription models continues to rise. Managing inventory, handling sales tax compliance, and navigating digital platforms are key challenges that CPAs can help address.
How I Can Help Lifestyle Business Owners
My mission is to empower lifestyle business owners to achieve their goals while maintaining the work-life balance they value. Here's how I can support you:
Understanding Your Goals
Whether your aim is to work fewer hours, earn enough to support a specific lifestyle, or grow your business sustainably, I tailor my services to your unique circumstances.
Focusing on What Matters
Traditional metrics like gross revenue aren't the only measures of success. For lifestyle businesses, time is often the most valuable resource. If your business allows you to work 10 hours a week and net $80,000 annually, you're achieving a goal that's as significant as scaling to multimillion-dollar revenues.
Scaling and Delegating
To create a business that supports your lifestyle, you need efficient systems and trusted employees. Document processes, train replacements, and delegate tasks to free yourself from daily operations. For example, when a unique situation arises, document the solution and use it as a training opportunity.
Tailored Financial Support
From tax preparation to bookkeeping and financial planning, I provide services designed to simplify your business operations. My goal is to help you focus on your passions without worrying about financial complexities.
Conclusion
The rise of lifestyle businesses reflects a cultural shift toward work-life integration and personal fulfillment. Generational differences and post-COVID trends have reshaped the small business landscape, creating opportunities for those who value flexibility and purpose.
If you're a lifestyle business owner looking for financial guidance, let's connect. I specialize in helping entrepreneurs like you simplify their finances and achieve their goals. Contact me today for a free consultation. And if you liked this article, please sign up for my newsletter below!
How an S-Corp Election Can Save Small Business Owners Thousands
Contractor working on a home remodeling project
How One Small Business Owner Saved Thousands in Taxes Every Year
Today, I want to share a story about someone I met who taught me just how much money small businesses can save on taxes with the right strategy. This experience sparked my passion for helping small business owners because I saw firsthand the immediate difference I could make.
While I was working in corporate, I met a contractor who was doing really well—he was making $250,000 a year remodeling homes all on his own. As we got to talking about his taxes and accounting, he opened up about how unhappy he was with his CPA, who had been working with him for 10 years. His biggest complaints? The CPA was unresponsive and never reached out to check on him throughout the year.
Since I’m a CPA and have a background in public accounting, I asked him about his business setup and how long he’d been this successful. That’s when I found out he’d been earning six figures for a decade, running his business as a sole-member LLC, but he had never switched to S-Corp status.
What Does That Mean?
For anyone unfamiliar, a sole-member LLC means you’ve formed an LLC (Limited Liability Company), but your business income is taxed as part of your personal taxes (1040). It’s reported on something called Schedule C, which is part of your personal tax return. This setup is great when you’re starting out or earning less, but as your business income grows, it can cost you more in taxes than it needs to.
That’s where an S-Corp election comes in.
Why Is an S-Corp Better for Some Businesses?
Here’s the big difference:
As a sole-member LLC, you pay self-employment taxes on virtually all your business profits. That’s Social Security (12.4%) on your income up to $160,200 (for 2023) and Medicare (2.9%) on all your income. Together, that’s 15.3% on your profits—a big chunk of money.
With an S-Corp, the rules change. Instead of paying self-employment taxes on everything, you pay yourself a reasonable salary for the work you do in the business. That salary is taxed for Social Security and Medicare, just like it would be for any employee. But the rest of your business profits—what’s called distributions—are not taxed for Social Security or Medicare. You still pay income tax on the distributions, but you save money by avoiding those extra payroll taxes.
Back to the Story
This contractor I met had been paying almost $30,000 a year in self-employment taxes because he was still filing as a sole-member LLC. That’s a lot of money to hand over every year! When I explained how an S-Corp could cut those taxes in half, he was on board.
The next year, after he made the switch, his employment taxes dropped to about $15,000. That’s $15,000 saved every year! And the best part? He continues to save that money every single year by keeping his S-Corp status.
The Lesson Here
Stories like this show how much money you can save just by structuring your business the right way. This contractor could have saved tens of thousands of dollars over the years if someone had given him this advice earlier. So, why didn’t his CPA tell him? Unfortunately, his CPA was just preparing his taxes, not proactively looking for ways to save him money. They weren’t doing any tax planning—and that’s a huge, missed opportunity.
Why Tax Planning Matters
If you’re a small business owner, it’s critical to meet with your tax professional during the year—not just at tax time. A good CPA will help you plan ahead and can potentially find strategies to lower your tax bill. Simple adjustments, like switching to an S-Corp, can make a massive difference.
If you’re wondering whether an S-Corp or other strategies might help you save on taxes, I’d love to help. Let’s schedule a free consultation to review your situation and see how you can keep more of your hard-earned money.
Disclosure
This article is for informational purposes only and is based on a story of a taxpayer who saved thousands on taxes. It is not tax advice. I do not know your specific tax situation, so this strategy may or may not work for you. For personalized tax advice, please schedule a consultation with a qualified tax professional.
Peyton Witt, CPA
Tax Pilot, LLC
peytonwitt1@taxpilotllc.com
Freedom
Bookkeeping for Contractors
Are you a growing contractor who is eager to scale your business? If so, this article is for you.
Key Takeaways:
Start bookkeeping if you have not already for the sake of growing your business
Consider more advanced forms of accounting for contractors as you grow
Your business's finances are key to its success and growth. While this may seem obvious, many small contractors often overlook this part of their business. To be fair, contractors are busy juggling many tasks and are usually focused on getting the job done and finding more work. However, it’s important for business owners to have accurate financial information and review it regularly. This helps them make smart decisions and grow their business the right way.
What if I told you that you could reduce your administrative work and spend less time on daily tasks, so you can focus more on finding new clients?
The fastest way to grow your business is by having accurate financial information, understanding it properly, and using that information to make smart business decisions.
The Basics
When you’re just starting out or running a small business, basic bookkeeping is enough.
So, what does basic bookkeeping look like for most contractors?
It’s simply recording and organizing your business’s financial transactions, like income, expenses, and payments, to keep your financial records up to date.
For smaller businesses, bookkeeping is usually done on a cash basis. This means you count income when you get paid, and you record expenses when money leaves your account. Basic bookkeeping gives you a simple overview of how your business is doing and is important for filing accurate tax returns.
If you need help with basic bookkeeping or want to know how much it might cost, feel free to schedule a free consultation.
Advanced Accounting
As your business grows and you have more employees working on different projects at the same time, job costing becomes really helpful.
So, what is job costing?
Job costing is a way of tracking all the costs for a specific project, like labor, materials, and other expenses, so you can figure out if the project is profitable and price it correctly.
Job costing becomes valuable at this point because it gives you more detailed financial information to make better business decisions.
Here’s an example:
Joe owns a roofing company with 12 employees, split into 4 teams of 3 people each. Joe started using job costing at the beginning of the year. After two months of tracking his projects, Joe noticed that one of his teams was taking twice as long to finish a roof compared to the others. Since labor costs are a major expense, this team’s slow progress meant Joe’s profit on that roof was half as much as the others. Now, with this information, Joe can make better decisions moving forward. Before, he didn’t have the time to track his teams in this way because he was busy with clients and other tasks.
This kind of insight can be valuable in many situations. The main benefit of keeping accurate financial records and tracking individual projects is that it helps you make decisions that can speed up your business growth.
Unfortunately, many business owners—contractors included—don’t have access to this type of information. Without it, they waste years trying to reach their growth goals. What we’re talking about here is accounting data that helps you make smart business decisions as your business grows and affects more people.
Are you overwhelmed by the amount of the administrative tasks involved with running a business?
I completely understand if that’s how you feel. Starting my own accounting firm as a solo entrepreneur has shown me just how many tasks are involved in running a business. Recently, I’ve started outsourcing some of the administrative work so I can focus more on clients and their needs.
If bookkeeping and payroll are things you really don’t enjoy (like many contractors I’ve worked with), think about outsourcing those tasks. It will save you time and help ensure accuracy. If you're curious about the cost, feel free to schedule a free consultation.
Peyton Witt, CPA
Owner, Tax Pilot, LLC
Expert Tax & Bookkeeping for Trades and Small Businesses
www.taxpilotllc.com
3 Key Considerations Before Electing S-Corp Status for Your Small Business
Starting with an S-Corp status for your LLC can be a great way to save on taxes. While I recommend this to many business owners, it’s not always the best choice for everyone. There are three key factors to consider before making the decision.
Extra Costs to Maintain S-Corp Status
When your small business elects S-Corp status, you’re required to file an additional tax return called Form 1120-S. This means that on top of your personal tax return, you’ll need to file a separate one for your business. Filing this form using TurboTax in 2025 will cost you around $1,749. Considering that is the TurboTax pricing, that is the new minimum price you will pay. You also have to pay yourself a “reasonable salary” and run payroll for yourself. Services like Gusto cost about $46 per month to handle payroll.
With these extra costs—filing an additional tax return and paying for payroll—it’s important to think about whether the savings on taxes are worth the added expenses.
QBI Deduction - Qualified Business Income
After electing S-Corp status, not all of your business income will qualify for a QBI deduction. Let’s say your business earns $150,000, and you decide to pay yourself $50,000. Before electing S-Corp status, the full $150,000 would have been eligible for the QBI deduction. But after the election, only the remaining $100,000 can be used for the deduction. This means you lose out on a $10,000 deduction.
Will Your Income Stay the Same?
This is a big one for small business owners. Here’s an example: I worked with a business owner who made $130,000 a year during the pandemic, thanks to strong online sales. Fast forward two years later, and their business only brought in $70,000. When they were making $130,000, electing S-Corp status made sense because of the savings on payroll taxes. But now, with their income lower, maintaining S-Corp status costs more than the savings from payroll taxes.
So, when thinking about electing S-Corp status, it’s important to consider not just how much money you’re making now, but also how your revenue might change in the future.
S-Corporation status for a small business is a great way to save money on payroll taxes. Just be sure that you consider many different aspects that may impact the tax calculation.
Disclaimer: This is general information and should not be considered tax advice. If you have questions or need help deciding whether S-Corp status is right for your business, I’m here to help. Feel free to book a free consultation today, and we’ll work together to find the best solution for you.