06/01/2026
S-corps are one of the most talked-about and often misunderstood, tax options for small business owners. They’re not a separate business entity, but a tax election that can change how your income is taxed, especially if you’re actively involved in the business. While they can reduce self-employment taxes in some cases, the benefits aren’t automatic and the rules can be complex. Understanding the basics can help you have a more informed conversation with your advisor before making the switch.
S-corps are one of the most talked-about and often misunderstood tax options for small business owners. They’re not a separate business entity, but a tax election that can change how your income is taxed, especially if you’re actively involved in the business. While they can reduce self-employment taxes in some cases, the benefits aren’t automatic and the rules can be complex. Understanding the basics can help you have a more informed conversation with your advisor before making the switch..