Here at Pulver CPA, we provide accounting services for Concrete Coating companies and epoxy garage floor companies.
One of the biggest questions that we get is whether a concrete coating company should be set up as an S-Corporation versus a sole proprietorship llc.
We've really grown to appreciate some of the advice from peers like Passageway Financial, a CPA & Tax Accountant for Landscaping Contractors, Whyte CPA, a CPA near Pheonix, and Drake Vant Hul, a Tax Accountant & CPA for Contractors.
It's really hard to get good advice about S-Corp vs LLC for epoxy garage floor contractors, but we're here to help, guide and handle everything for you.
We provide an Outsourced Accounting Service where we handle all your accounting, bookkeeping and tax returns while proactively engaging throughout the year to help you do everything possible to reduce your taxes and build a more scalable business..
For a small monthly retainer, we help concrete coating companies and epoxy garage floor contractors build profitable businesses rather than allowing their hard work to go to the IRS.
Should you be an S-Corp or a sole proprietorship when you are an epoxy contractor?
When you first start, you'll want to remain as a sole proprietorship because the cost of s corporations need to be offset by the potential tax savings.
S-Corporations are a little bit more expensive to run, so you want to make sure that you have enough tax savings to pay for all the administration costs.
Therefore, we usually recommend that concrete coating companies remain a sole proprietorship until they hit about $40,000 or more in net profit.
We know that Penntek Dealerships benefit deeply from S-Corps, and that they'll be able to properly invest into concrete coating marketing, SEO and everything they need to dominate their local areas, kind of like how Cascade Concrete Coatings has become the best epoxy garage floor contractor in Redmond Washington.
The main reason why people convert to an S-Corporation or set up as an S-Corp is to help save in their self-employment taxes.
Read more about self employment taxes from the IRS here.
In a sole proprietorship, 100% of the net profits will be subject to the 12.4% Social Security tax, as well as the 2.9% Medicare tax.
You will pay the 12.4% Social Security tax on all income up to the Social Security limit
So proprietorships end up paying lots of self employment taxes and an S-Corporation will be able to dramatically mitigate these in almost every situation.
So should you be an S-Corporation or a sole proprietorship, it sounds like it's a good idea to be an S-Corp.!
Yes, when your net profits are higher than $40,000 to $60,000 a year, you should use a 2553 form and convert from a sole proprietorship over to an S-corporation.
S-Corporations are better in most ways for concrete coating companies, and can save you tens of thousands a year and Social Security and Medicare taxes.
There is red tape, bureaucracy and requirements to convert from a sole proprietorship over to an S-Corporation, and we would love to help you.
When you become an S-Corporation, you'll need to ensure that you have shareholder documents, a payroll system, and that you pay all required self-employment taxes.
We help many different niches, like Crypto, Real Estate and we're proud to be the Best Business CPA in Miami.
Here at Pulver CPA, we specialize in helping companies convert to an S-Corporation correctly, avoid all the problems and formalities, and then run their accounting, payroll and S-Corporation taxes moving forward.
Pulver CPA will help you implement and maximize your S-Corporation.
Yes, we will help you setup an S-Corporation, properly file the S-Corporation election or S-Corp conversion paperwork 2553 forms, and help do your year-end business taxes.
Your S-Corporation is going to need a payroll system and you're going to have to make decisions around how you pay yourself inside of your S-Corporation through the payroll system.
We will help you make good decisions around your S-Corp salary and also ensure that your taxes are paid throughout the year and at the end of the year.
We exist to help business owners pay as little in taxes as legally possible while simultaneously helping them build more scalable businesses.
Whether you're a small epoxy garage floor contractor, a Certified Penntek dealer, or any other concrete coating company, we will help you lower your taxes and upgrade your accounting systems to support serious growth.
So should concrete coating companies become S-Corps or stay as sole proprietorships? In almost every way, it makes a lot more sense for a concrete coating contractor to become an S-Corp but they need to make sure that they have a comprehensive tax deduction strategy as well as excellent accounting.