{"id":3897,"date":"2026-02-02T14:23:00","date_gmt":"2026-02-02T20:23:00","guid":{"rendered":"https:\/\/www.connerash.com\/blog\/?p=3897"},"modified":"2026-02-16T15:21:37","modified_gmt":"2026-02-16T21:21:37","slug":"february-2026-client-profile","status":"publish","type":"post","link":"https:\/\/www.connerash.com\/blog\/february-2026-client-profile\/","title":{"rendered":"February 2026 Client Profile"},"content":{"rendered":"
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\"\"<\/figure>\n<\/div>\n\n\n

Ellen, a solo entrepreneur, projects a net profit of $100,000 in her first year. The big question: keep her single-member LLC as a default sole proprietorship or elect S-Corp taxation?<\/p>\n\n\n\n

As a sole proprietorship, she pays 15.3% self-employment tax on nearly the entire $100,000 plus income tax after the 20% qualified business income (QBI) deduction, for a total federal tax bill of about $21,630.<\/p>\n\n\n\n

By electing S-Corp status and paying herself a reasonable $50,000 salary, only the salary is subject to payroll taxes ($7,650 total FICA). The remaining $50,000 flows as a tax-free distribution. After the same QBI deduction and slightly higher income tax, her total federal taxes drop to about $15,850.<\/p>\n\n\n\n

Bottom line:<\/strong> the S-Corp route saves her roughly $5,800 in year one, even after minor payroll service costs.<\/p>\n\n\n\n

For profits over roughly $60,000, S-Corp almost always wins for active owneroperators. At $100,000, the choice is clear \u2014 electing S-Corp puts thousands more in Ellen’s pocket from day one.<\/p>\n\n\n\n

Client Profile is based on a hypothetical situation. The solutions discussed may or may not be appropriate for you.<\/sub><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Ellen, a solo entrepreneur, projects a net profit of $100,000 in her first year. The big question: keep her single-member LLC as a default sole proprietorship or elect S-Corp taxation? As a sole proprietorship, she pays 15.3% self-employment tax on nearly the entire $100,000 plus income tax after the 20% qualified business income (QBI) deduction, … <\/p>\n

Continue reading “February 2026 Client Profile”<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[39,165,387],"tags":[],"class_list":["post-3897","post","type-post","status-publish","format-standard","hentry","category-newletters","category-s-corporation","category-single-member-llc"],"yoast_head":"\nFebruary 2026 Client Profile - Conner Ash<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.connerash.com\/blog\/february-2026-client-profile\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"February 2026 Client Profile - Conner Ash\" \/>\n<meta property=\"og:description\" content=\"Ellen, a solo entrepreneur, projects a net profit of $100,000 in her first year. 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