TaxGuyBill
Level 15

@HOPE2 wrote:

I think they better to switch S-corp.


 

Be careful about immediately recommending a S-corporation, especially if their wages/salary would be less than the Social Security maximum.

If their wages/salary will be less than the Social Security maximum, the client needs to know exactly how the S-corporation arrangement would affect their potential Social Security benefits.  If you are not explaining that to the client, you should NOT be recommending a S-corporation.