---

@ptax255 wrote:

Updated based on everyone's feedback. Thanks! Curious, what amount do you all think it's worth all the extra work of an S corp?

---

That is something the client needs to decide.  Things to inform the client:

• Tax saved.

Versus

• Extra cost of income tax preparation.
• Extra time/cost for bookkeeping.
• Extra cost of payroll processing, payroll returns, year-end payroll stuff, etc.
• Extra cost of unemployment.
• Amount of reduced potential Social Security benefits.  In my opinion, if a tax preparer does not discuss this with the client they should NOT be recommending an S-corporation because the client would usually be mislead by only telling them of the tax savings (and potentially set up the tax preparer for a lawsuit for under-informing the client).