Ronald:
Thanks for your reply.
Lets say your business made $150000 in 2021
LLC does not makes sense for me as it moved all income and expenses to schedule C. So all income until FICA cap (which I think is like $142800 for 2021) and medicare has no limit. I will get screwed there.
S corp, income is only via payroll so I decide how much you want to pay yourself (reasonably). Lets say I pay myself $50k and rest will be come as distribution (1099). with S corp, Sch C has only expenses but no income.
With S corp I can deduct Health insurance and 401K as well.
Q. What are entity level (either LLC or S corp) tax filings? Is it only to IRS (federal) or state as well? I am assuming when S corp is generating W2 and 1099 its copy go to IRS as well. Are there additional filing by S corp in terms of taxes?
