Everybody wants to be an S Corp
guy calls.. tells me he has an easy return.. i learned my lesson thanks to PATAX to actually review last year's return before giving a quote.. so the guy with the easy return comes out today. and he goes.. i have a little side hustle.. ok.. no big deal I thought, Schedule C, even it is a SMLLC.. then he says he did about $ 200,000 in revenue and he is an S Corp.. i said.. oh who does your payroll? he goes.. payroll? i don't run any payroll.. i said.. how do you get money out of the S Corp? oh i just transfer it from my S Corp to my personal account.. so his S Corp shows $ 200,000 in income, virtually zero expenses.. (service business) so the net was about $ 200,000.
so then i ask him.. who set up this S Corp? oh the CPA that did my return last year.. she said i can save some money being an S Corp.. did she explain the whole issue of payroll to you? no, not really.. i just read something about payroll on my own last month he tells me.
some pretty sloppy work out there.. S corp with basically zero expenses, no payroll. no FICA.. nada.. oh well.. that was an interesting one at least if nothing else.
