Small Business Accountant for Helping with S-corp (Liberty: 2014, health insurance)

[LeftCoastEnvy]

My husband is considered self-employed since he is paid as a contractor and receives a 1099-Misc for his income. He has started making more money through over the past few years with other side contracts, and we are trying to figure out if it would be beneficial to change from a sole proprietorship to an S corporation.

Does anyone have any recommendations for someone in the Triangle area who could help set up the accounting side of an S-corp? Thank you!

[local2rtp]

Not a CPA recommendation but I think there was a change in how health insurance premiums are taxed when paid by the s-corp. If I recall right, it is less favorable than in the past from 2014 onwards. Apart from that, if you can pay yourself a salary that is not too low to trigger an audit and not too high to erase savings from not paying FICA tax for the non-salaried earnings, then you could consider s-corp route. Note that FICA goes up by 0.9% if you exceed certain limits (Obamacare clause).

It may cost about $750 - $1000 p.a. to maintain basic records and file the necessary State and Federal forms. Unless you see tangible savings by lowering your FICA liability or you want to limit liability in case you got sued by a customer, you might want to rethink about moving from 1099 to s-corp.

[Carlos_Danger]

Find an independent tax expert with a good reputation. Stay away from the chains. H&R Block,Liberty etc hire just above minimum wage seasonal staff. Then charge big bucks to do your return(s).