I hear Mark often touting the benefits of the S-Corp election for everyone but I need a little help getting my head around this in our situation. My wife and I are blessed with day gigs that are both about $250K. We are also the primary owners of 3 different consulting partnerships, each with their own LLC. Our consulting partnerships net out about $200K each in SE income. Since we each max out FICA in our day gigs, is it really in our best interest to consolidate the LLCs into an SCorp structure aside from reduced audit risk? In addition to the expense of setting up (probably insignificant) I also think that the S Corp election would limit our solo 401K employer contributions, maybe making this all a wash and not worth the trouble. Am I thinking about this incorrectly?
We answered on todays show 11/12 recording. It should be up in two days.
Thank you…we greatly appreciate both of you!