I’m currently a sole proprietor. I’m a consultant so my expenses are very low relative to income. My new accountant is extremely hyped to convert me to an s-corp. The tax math checks out, but I keep finding new non-tax expenses he didn’t mention, like having a registered agent and a virtual address. He doesn’t seem to see non-tax expenses as real, and I’m worried I’m going to finish this process only to find out the expenses eat up all the savings. I’ve got the following list of expenses so far, what am I missing?
- Corporate tax preparation
- Corporate taxes
- Payroll service
- Virtual address (so my home address isn’t in the public DB)
- Registered agent (same)
Did the salary/distribution conversation take place? If you’re the only employee, it’s likely that all of your income should be paid to you via payroll instead of distributions.