EP17 - S-Corp Horror Stories and What They Teach Us

In this episode of 'Let's Get Fiscal,' hosts Anastasia Myiesha and Danielle from Coterie Tax delve into the complexities and potential pitfalls of S Corporations. They discuss common issues like confirming your S Corp status, dealing with payroll requirements, separating personal and business expenses, and ensuring equal treatment of shareholders. They also provide actionable advice on how to navigate these challenges to prevent costly mistakes and avoid IRS complications. Whether you're a single-member LLC considering the switch or a current S Corp owner, this episode offers essential tips to help you manage your business finances effectively.


00:00 Introduction to S Corp Pitfalls
00:37 Common Issues with S Corp Status
01:29 Confirming Your S Corp Status
03:45 Acting as an S Corporation
09:25 Payroll Requirements for S Corps
14:01 Understanding Payroll and Distributions
14:31 Livable Wage Considerations
15:53 Reasonable Compensation Studies
16:15 Importance of Payroll Compliance
17:19 Co-Mingling Business and Personal Expenses
20:14 Accountable Plans and Reimbursements
23:08 Treating Shareholders Equally
26:33 Deciding on S Corporation Status
27:31 Final Tips and Contact Information

🔗 Helpful Links & Resources

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Catch the latest episodes at: https://www.coterietax.com/podcast

📊 Need personalized help with your business finances?
Learn more about working with Anastasia and Myiesha: https://www.coterietax.com