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The Abundant OD

The Abundant O.D. Series highlights successful optometrists who are working to make a positive difference in the world and contribute to the greater good. In our episodes, we get to know the people behind the title, what makes them tick, and the mission they are working to serve.

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The Abundant OD

Understanding the S Corporation Election: Key Insights for Service-Based Businesses

September 19, 2024 • Eric • Season 2 • Episode 5

In his latest episode, Eric covers the nuances of the S Corporation election, particularly for service-based businesses. You'll learn why the S Corporation is frequently recommended, the core benefit of saving employment taxes, and the potential pitfalls of blanket advice without considering specific circumstances. He shares the importance of a tailored tax strategy, the implications of self-employment and payroll taxes, and how to properly set and document salaries to maximize tax efficiency. Whether you're just starting or already have an S Corp, this podcast provides valuable insights to help you make informed decisions for your business.

00:00 Introduction to S Corporations

02:02 Common Misconceptions and Blanket Advice

03:37 Key Factors in Tax Strategy

05:18 The Major Benefit of S Corporations

06:07 Understanding Employment Taxes

08:27 Optimizing Your S Corporation

27:27 The Qualified Business Income Deduction

35:43 Advanced Tax Strategies

38:32 Conclusion and Final Thoughts