# @edwardcollins_upleveled on Instagram

- **Type:** Video
- **Original URL:** https://www.instagram.com/p/DKsLflDx9b9
- **Gondola URL:** https://gondola.cc/posts/35104066-edwardcollins-upleveled-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/2c04c0da3d.jpg
- **Posted:** 2025-06-09T18:38:08.000+00:00
- **Account Owner:** Edward Collins | Money Lawyer & Wealth Strategist (@edwardcollins_upleveled) — https://gondola.cc/edwardcollins_upleveled

## Caption

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 return adds complexity and cost. 

✅ You must run actual payroll (which means tracking reasonable comp carefully). 

✅ You must evaluate QBI deductions and other downstream impacts. 

And here’s why I tell business owners all the time: 

👉 The S Corp election is not for everyone. 

For it to make sense, you need: 

✔️ The right income level. 

✔️ The right business activity. 

✔️ The right overall tax and legal structure. 

Otherwise — you may pay more in prep and compliance than you save in taxes. 

Bottom line: 

The S Corp can be a great move — when it fits your bigger picture. 

But if you’re copying someone else’s strategy… without understanding the details? 

🚩 You’re setting yourself up for problems. 

If you want to dive deeper into how strategies like this fit inside a complete financial hierarchy — one that protects, grows, and preserves wealth — 

👇 Let me know in the comments. 

Credits: 
Mark J. Kohler - [markjkohler] 
[mainstreetpros] 

 SF0701

## Stats

- **Views:** 54
- **Likes:** 317
- **Shares:** 0
- **Comments:** 12

## Credits

These are the roles credited on Gondola. Credits may be incomplete.
A brand, account owner, or featured person is not necessarily the creator.

| Name | Username | Profile | Role |
| --- | --- | --- | --- |
| Edward Collins | Money Lawyer & Wealth Strategist | @edwardcollins_upleveled | https://gondola.cc/edwardcollins_upleveled | Talent |
| Hector Garcia | @Hector_FilmSchool | https://gondola.cc/Hector_FilmSchool | Content Producer |

---
Copyright (c) Gondola