If you’re running a small unincorporated business in Ohio, can I suggest you instead consider operating the venture as an Ohio S corporation?
Here’s why I say this… If you are a small business owner who files a Schedule C to report your business earnings, you may be familiar with line 57 on the second page of your 1040: the self-employment taxes you pay (cue ominous music). Those taxes are the reason to consider the Ohio S corporation option.
While you cannot completely eliminate these taxes with an S corporation, you may be able to save on them by exploiting the tax opportunities afforded by the Subchapter S loophole.
To do this, you can work with a local accountant or attorney to form the S corporation entity and get the accounting set up. Or, alternatively, you can just use one of our step-by-step do-it-yourself kits to create an Ohio LLC or corporation and then make the s-election for that entity.
Our Ohio S Corporation kits
For Ohio small business owners and entrepreneurs interested in the small business s-corporation option, we actually provide two downloadable do-it-yourself kits.
We recommend Ohio businesses use the LLC version of our s-corporation kit, which you can acquire by clicking the button below
If you want to use a traditional corporation as the base for your s-corporation, alternatively, you can purchase that kit by clicking the button below.
Note: each kit comes with complete instructions you will need to form an LLC or corporation as well as sample governing documents you will need for the new entity.
Money Back Guarantee
All of our digital goods come with a money back guarantee. If you buy one of our Ohio kits and realize it doesn’t help in your situation, just e-mail us for a refund request. The e-mail address is steve.nelson@stephenlnelson.com.
Additional Resources
Making Shareholder Distributions Look Reasonable to an IRS Agent: S-corporation owners have two types of income: payroll from their W-2 and distributions of profits… make sure you have the right mix.
Blue Collar S Corporations: Just because you don’t wear a suit and tie to work most days doesn’t mean you can’t save money on taxes, even with an “average” income.
Why Small Businesses Should Outsource Payroll: As an s-corporation, you will have to report payroll. While we are generally very supportive of doing it yourself, this is one instance it might not make much sense.