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Practical Asset Protection

S-CORP SALARY AND DISTRIBUTION SPLIT

You Are Paying 15% Tax On Money the IRS Never Required You To

Every dollar you earn as a sole proprietor or single-member LLC is subject to self-employment tax. An S-Corporation splits that income into a salary and a distribution. The distribution is completely exempt from that 15.3%. Most business owners save between $10,000 and $30,000 in the first year alone.

Flat-Fee Pricing

One published price. You know the number before we touch a single document

Legal-Grade Documents

Every document drafted by a paralegal and reviewed by licensed legal counsel.

Multi-State Structure

Wyoming to California. Every layer coordinated and built to hold when it matters.

No Hourly Billing

You pay once. No retainer. No meter running. No invoice you didn't see coming.

Why Practical Asset Protection

Protected. Documented. Delivered in days

  • No offices
  • No hourly clock
  • No waiting room

No sales pitch. Just the structure, built correctly.

Frequently Asked Questions

Q ) Is the S-Corporation election right for every business?

Not always. It makes the most sense when net income exceeds $40,000 annually. Below that threshold the payroll administration cost may exceed the tax savings. We assess your situation during intake before any filing is made.

Q ) Do I need to form a new entity?

Not necessarily. An existing LLC can elect S-Corporation tax treatment without changing its legal structure. The election is a tax classification change, not an entity formation.

Q ) What happens if I miss the election deadline?

The IRS has specific deadlines for the S-Corporation election. We file it correctly and on time. If you have missed the current year deadline, we assess whether a late election is available for your situation.

he self-employment tax is optional. Most business owners just never found out

The split is legal, documented, and IRS-defensible when it is built correctly

The S-Corporation election designates a reasonable salary for the owner — subject to payroll taxes — and treats remaining net profit as a corporate distribution exempt from the 15.3% self-employment tax. Every dollar above the salary threshold stops being subject to that tax. We file the election, build the salary and distribution structure, and coordinate with your CPA so the savings show up on your return the first year the structure is in place.

The salary you pay yourself is costing you more than it should

Most business owners set their own salary based on what feels right or what their accountant suggested years ago. That number has real consequences. Too high and you pay unnecessary payroll taxes on every dollar above what the IRS considers reasonable. Too low and you invite an audit. The correct salary is a documented, defensible number built around your actual net income — and it is the number that determines exactly how much of your profit moves to the distribution column where the 15.3% cannot touch it.

This Is for You If…

If you are running a profitable business as a sole proprietor, single-member LLC, or partnership and paying self-employment tax on every dollar of net income, you are overpaying. The S-Corporation election exists specifically to stop that. The IRS allows it. Most business owners simply were never told it applied to them.

  • You net more than $40,000 annually from your business
  • You are currently structured as a sole proprietor or single-member LLC
  • You have never filed an S-Corporation election
  • Your accountant files your taxes but has never discussed entity restructuring
  • You want to reduce your tax burden before the year closes — not after

What you get for $697

The S-Corp Salary and Distribution Split package includes everything required to implement the election correctly — the filing, the structure, and the CPA coordination brief so your accountant understands exactly how to treat the income split on your return.

  • IRS Form 2553 preparation and filing — S-Corporation election executed correctly
  • Reasonable salary analysis — documented and defensible under IRS scrutiny
  • Distribution structure framework — built around your current net income
  • CPA coordination brief — so your accountant implements the split correctly
  • Payroll setup guidance — what needs to be in place before distributions begin
  • Two rounds of revisions
  • Delivery in two to three weeks from intake completion

The savings from year one pay for this structure many times over

Everything above is prepared by an assigned paralegal and reviewed by licensed legal counsel before it reaches you. One flat fee. No retainer. No hourly billing. No invoice you did not see coming.