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<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 12pt"><o:p>I've been registered as an S-Corp for years.
Another major advantage that should be mentioned is that as an "employee" you
are insulated from most liabilities. If some type of disaster occurs and
someone decides to sue your butt their only real legal claim is against the
corporation. They can bankrupt the Corp but you are protected, (with the
possible exception of gross negligence which you would still have some degree of
protection from). This separation from liability alone is worth it.
It's the cheapest insurance policy you could ever buy. Much to contrary
belief setting your business up as an S-Corp is not very difficult and is
relatively inexpensive. You can do it yourself or your accountant can do
it for you.</o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 12pt"><o:p></o:p></SPAN></FONT> </P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 12pt"><o:p>Rob Goodale, RPT</o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 12pt"><o:p>Las vegas, NV</o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 12pt"><o:p></o:p></SPAN></FONT> </P></DIV></DIV>
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<DIV>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">One of the biggest
benefits of S corp is reduction of self employment tax. Under S corp you
hire yourself to do the work. You pay yourself a nominal salary that is
subject to normal withholdings- including FICA and the employers share,
which amounts to the same as the 15% self employment. The bonus is that you
as the owner/majority share holder get to pay yourself dividends off the
company’s profits. These dividends are treated like interest income and are
only subject to ordinary income tax; they not subject to FICA taxes.
<o:p></o:p></SPAN></FONT></P></DIV>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">For example, if
your business nets $75k per year and you are sole proprietor, you pay 15%
off the top for self-employment which is over $11k. Under S corp you could
hire yourself for a technician salary of say $25k per year (you make up a
“reasonable” number here) and pay the remaining $50k out as dividends. You
only pay the FICA taxes on the $25k. This would save you $7500 per year in
self employment taxes.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">There may be other
benefits and/or liabilities. Check with your tax consultant.
<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial color=navy size=2><SPAN
style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
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<P class=MsoAutoSig><B><FONT face="Bradley Hand ITC" color=navy size=6><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 22pt; COLOR: navy; FONT-FAMILY: 'Bradley Hand ITC'">Dean</SPAN></FONT></B><FONT
color=navy><SPAN style="COLOR: navy"><o:p></o:p></SPAN></FONT></P>
<P class=MsoAutoSig style="MARGIN: 0in 0in 0pt"><U1:PERSONNAME
u2:st="on"><FONT face="Times New Roman" color=navy size=3><SPAN
style="FONT-SIZE: 12pt; COLOR: navy">Dean
May</U1:PERSONNAME>
cell 812.239.3359 <o:p></o:p></SPAN></FONT></P>
<P class=MsoAutoSig style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
color=navy size=3><SPAN
style="FONT-SIZE: 12pt; COLOR: navy">PianoRebuilders.com
812.235.5272 <o:p></o:p></SPAN></FONT></P>
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w:st="on"><FONT face="Times New Roman" color=navy size=3><SPAN
style="FONT-SIZE: 12pt; COLOR: navy">Terre
Haute</SPAN></FONT></st1:City><FONT color=navy><SPAN
style="COLOR: navy"></U1:CITY> <U1:STATE u2:st="on"><st1:State
w:st="on">IN</U1:STATE></st1:State> <U1:POSTALCODE
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w:st="on">47802</st1:PostalCode></SPAN></FONT></st1:place></P></DIV></BLOCKQUOTE></DIV></BLOCKQUOTE></BODY></HTML>