Are you self-employed and earning over $100,000 a year? Whether you’re a consultant, creative, agency owner, or an online entrepreneur, you might be paying more in taxes than you need to—especially in self-employment taxes.

The good news? There’s a legal and strategic way to reduce your tax burden—and it’s called the S-Corp election.
Thousands of six-figure earners across the U.S. are already using this approach to keep more of what they earn. Let’s explore why it works—and whether it might be the right move for you.

🚨 The Tax Drain Most High Earners Don’t See

If you’re operating as a sole proprietor or single-member LLC, your profit is likely subject to self-employment tax (15.3%)—on top of income tax.

That means if your business nets $120,000, you’re potentially sending over $18,000 just in self-employment tax… before touching your income tax bill.

For high earners, this is a silent leak that adds up fast.

💡 What Is the S-Corp Strategy—and Why It Works

When your business elects to be taxed as an S-Corp, the IRS lets you split your income into two parts:

1. A reasonable salary — taxed just like a W-2.
2. A distribution of profits — not subject to self-employment tax.

That second part? It’s where the savings come in.

But here’s the catch: your salary must be “reasonable” in the eyes of the IRS. Too low, and you risk penalties. Too high, and you lose the benefit. That’s why this strategy isn’t one-size-fits-all—it needs to be tailored to your income, industry, and goals.

Many of our clients save $5,000 to $25,000+ per year, depending on income and structure

🧠 Does This Work in My State? Yes—Here’s Why

S-Corp election is federal, meaning it applies in all 50 states. But some states have nuances you need to be aware of:

• Texas and Florida: These no-state-income-tax states are ideal for S-Corp strategies.
• New York and Virginia: State-level filing fees and payroll taxes apply, but you can still benefit significantly.

We work with clients nationwide and tailor each plan to both federal law and state-specific rules, including estimated payments, payroll setup, and S-Corp compliance.

✅ Who Should Consider the S-Corp Strategy?

You might be a fit if:

• You’re earning $75,000–$250,000+ in net profit annually
• You’re already an LLC or plan to form one
• You’re ready to pay yourself through payroll
• You want to reduce your tax bill without shady loopholes
• You want to scale your business and your wealth, not your tax burden

Even W-2 employees with profitable side hustles may qualify—yes, we said it

⚠️ The Cost of Doing Nothing

Most six-figure earners don’t realize this strategy exists until their CPA casually mentions it—or worse, never does.

Miss the IRS deadline (March 15th for most), and you lose the savings for that tax year—or face extra paperwork just to catch up.

Worse? Some business owners file the S-Corp election, but do it wrong—with incorrect salaries, skipped payrolls, or no reasonable compensation analysis. That leads to IRS red flags, penalties, and audits.

📍 Why Work with a Virtual Tax Strategist?

We serve clients in:

• Texas, Florida, New York, Virginia
• and all across the U.S.—virtually, securely, and with white-glove service.

From filing your S-Corp election to managing payroll and keeping you compliant, our process is streamlined to save you money and stress

📅 Ready to Find Out If You Qualify?

We’ll walk you through:
– Whether the S-Corp election is right for your situation
– How much you could save this year
– How to structure it for compliance and long-term success

👉 Click here to schedule your free tax strategy session today: Calendly
Let’s make sure you’re not leaving money on the table. 💰