Is an S Corp Right for You? Let’s break it down — the right way. The S Corporation election is a powerful tool. But here’s what most business owners miss: 👉 It’s not a one-size-fits-all strategy. When you run a business, you’re automatically exposed to self-employment tax: ❌ 12.4% Social Security. ❌ 2.9% Medicare. = 15.3% total. That’s what I call the dreaded F word of taxation. What the FICA! Here’s where the S Corp comes in: It creates a legal fiction where you’re both: 🧑‍💼 An employee. 🧑‍💼 And an employer of your own business. Your reasonable salary as an employee? ✅ Subject to self-employment tax and income tax. But everything above that? Owner’s draw. ✅ Not subject to self-employment tax. (Still subject to income tax — but with a lower overall exposure.) Sounds great, right? It is — when done correctly. But here’s the part most people don’t tell you: ✅ You must file a separate return — Form 1120-S — not just a Schedule C. ✅ That ...