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One thing that hasn't been mentioned yet - make sure you're considering state taxes too. In some states, S corps face additional taxes or fees that LLCs don't. Here in California, for example, S corps have a minimum $800 franchise tax regardless of profit, plus an additional 1.5% tax on net income. I switched from LLC to S corp 3 years ago when my handyman business income hit about $95k, and while I saved on federal self-employment taxes, the CA additional taxes ate into about 20% of those savings. Also, don't forget the admin burden. You absolutely need a good accountant for an S corp - trying to DIY the payroll requirements, shareholder meetings, separate accounting, etc. is a nightmare.
That's a good point about state taxes I hadn't considered. I'm in Pennsylvania - anyone know if there are additional S Corp taxes here I should be aware of? And yeah, I've got a decent accountant, but I'm wondering what the ballpark increase in accounting fees might be going from LLC to S Corp.
In Pennsylvania, S Corps are subject to a flat Capital Stock Tax of 0.25% on the corp's capital stock value, though I believe there's an exemption for smaller businesses. There's also a $70 annual registration fee. Nothing as bad as California's situation, but worth factoring in. For accounting fees, my costs went up by about $1,200 annually after switching to S Corp. This includes quarterly payroll processing, year-end W-2/W-3 filings, and the more complex tax returns. Most accountants I've talked to charge between $800-$2,000 more for S Corp clients vs LLCs, depending on business complexity. Get a clear quote from your accountant before making the switch.
Everyone's talking about the tax benefits of S Corps, but nobody mentioned the asset protection angle! As someone who got sued in my construction business, this matters. With an LLC, if you're a single-member, the courts in many states treat it as less separation between you and the business. With an S Corp, you have stronger liability protection in many jurisdictions because the corporate structure is more clearly defined and respected by courts. Also, for QBI purposes, remember that certain construction specialties may count as "specified service businesses" which phase out QBI benefits at higher income levels. Worth checking if your specific estimating work falls under that category!
Can you elaborate on this "specified service business" thing? I thought construction was pretty straightforward and qualified for QBI without restrictions. Does estimating specifically fall into a different category? This is making me nervous about my situation.
@Sophia Miller brings up a great point about the specified "service business classification!" Construction estimating should generally qualify for full QBI benefits since it s'providing services TO the construction industry rather than being something like consulting or professional services. The IRS defines specified service businesses as those involving performance of services in health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or any trade where the principal asset is the reputation or skill of employees/owners. Construction estimating typically falls under regular business operations serving the construction trade. However, if you re'doing a lot of consulting work or your business is more about providing expert advice/opinions rather than actual quantity takeoffs and bid preparation, there could be some gray area. The key test is whether your income comes from performing services in "a" specified field versus providing services to "that" field. For asset protection, you re'absolutely right that S Corps generally offer stronger liability protection, but don t'forget that proper insurance coverage is still your first line of defense regardless of business structure!
What about work-life balance differences between the two? I'm currently in law school and considering tax law, but hearing horror stories about attorney hours has me second-guessing.
I've been a tax attorney for 7 years after switching from general practice. The work-life balance actually isn't as bad as other legal specialties. Tax attorneys typically work 50-60 hour weeks, with some seasonality but nothing like the 80+ hours you might see in corporate or litigation. The CPA side does have more extreme seasonality though. My CPA friends work insane hours January-April (70+ hour weeks), but then have much more reasonable schedules the rest of the year. Some even take extended time off in summer.
This is such a helpful thread! I'm in a similar position - been doing tax prep for 3 years and trying to decide my next move. One thing I'm curious about that hasn't been mentioned much is the income progression differences. From what I've researched, tax attorneys seem to have higher starting salaries but CPAs might have more predictable income growth over time. Has anyone here made the switch from one to the other, or can you speak to how the compensation tracks differently over a 10-15 year career span? Also, I'm wondering about the continuing education requirements - are they significantly different between the two paths? I know both require ongoing learning, but I'm curious if one is more intensive than the other in terms of staying current. Thanks for all the real-world insights everyone has shared so far - this is exactly the kind of practical information that's hard to find elsewhere!
Great questions! I'm actually pretty new to this community but have been researching both paths myself. From what I've gathered talking to professionals in both fields, the income trajectory does seem to differ quite a bit. Tax attorneys typically start higher (maybe $80-120k depending on firm size/location) but their growth can be more variable - it really depends on whether they make partner, build a strong client base, or specialize in high-demand areas. CPAs might start lower ($55-75k) but seem to have more predictable income growth, especially if they build their own practice or move into industry roles. On continuing education, both require ongoing learning but the focus is different. CPAs need 40 hours annually in most states, with specific requirements for ethics and technical updates. Tax attorneys have similar hour requirements but through their bar associations, plus they need to stay current on case law and legal precedents, not just tax code changes. I'm still weighing both options myself, but the seasonal vs. project-based work styles seem like the biggest differentiator to me. Really appreciate everyone sharing their real experiences here!
Has anyone considered that the OP might be able to use the home office deduction? If you have a legitimate home office for your podcast business (editing, admin work, etc.), then drives from your home office to other business locations aren't considered commuting - they're business travel. Might be a workaround worth exploring.
This is actually a really smart approach. I do photography and my tax guy helped me set this up. Because my home office is my "principal place of business," my drives to photoshoots are considered business travel, not commuting. OP would need to have a dedicated space used regularly and exclusively for the podcast business though.
I've been dealing with similar mixed-use vehicle situations for my freelance consulting work. One thing that helped me was keeping a detailed log that separates my different uses of the car. For your situation, I'd suggest tracking three categories: 1) Regular W2 commute (not deductible), 2) Podcast-related equipment transport or meetings (potentially deductible), and 3) Any additional trips solely for podcast business (definitely deductible). The key is proving that specific trips or portions of your vehicle use are exclusively for the podcast business, not just multitasking during your regular commute. If you ever drive somewhere specifically to record an episode, meet with sponsors, or pick up podcast equipment, those miles would be legitimate business expenses. The IRS really focuses on the primary purpose of each trip, so documentation is crucial. Also consider that as your podcast grows, you might start doing more podcast-specific travel (conferences, interviews, equipment purchases) which would clearly be deductible business use.
Have you considered the capital gains implications when you eventually sell either property? If the house is primarily used as a rental, you could lose some of the capital gains exclusion you'd normally get on a primary residence. Might be worth factoring that into your long-term strategy.
This is such a thoughtful arrangement for caring for your mother while generating income! I'm dealing with a similar mixed-use situation with my property, and one thing that's helped me is keeping a detailed log of exactly when and how I use each space for business versus personal purposes. For your camper situation, I'd suggest documenting not just the rental periods for your house, but also any time you use the camper space for business activities like managing bookings, communicating with guests, doing maintenance planning, or handling rental paperwork. Even if it's just a corner with a laptop, that business use percentage can add up. Also, since you mentioned this arrangement makes your mom happier, you might want to explore if any of this could qualify under medical expense deductions too - though that's a separate category from business expenses. The fact that this living situation is partly for her care might open up additional tax benefits. Keep every receipt and take photos of your setup showing the business use areas. The IRS loves documentation, especially for unique situations like yours!
That's a great point about the medical expense angle! I hadn't considered that aspect at all. Since the whole arrangement is partly to provide care for your disabled mother, there might be some medical-related deductions available too. The documentation advice is spot-on - I've learned the hard way that the IRS really does want to see detailed records for anything that's not completely straightforward. Taking photos of your workspace setup in the camper is genius - visual proof of business use could be really valuable if you ever get questioned. One question - when you're tracking the business use percentage, do you calculate it based on square footage of the camper used for business, or time spent on business activities, or both? I'm trying to figure out the best approach for my own similar situation.
Daniel White
Just a warning - if customs holds your package and you don't pay the fees within 10 days (at least with bpost), they might send it back to the seller! This happened to me with an order from Japan because I was on vacation when they sent the notification. Check your email regularly and maybe download the app for whatever delivery service is bringing your package.
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Nolan Carter
ā¢Adding to this - sometimes the notifications go to spam too! Always worth checking your spam folder if you're expecting an international package. I almost missed a DHL customs payment email that way.
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Isabella Costa
Had a very similar experience with an order from Zalando that I thought was shipping from their European warehouse but ended up coming from their Hong Kong fulfillment center. Ended up paying about ā¬45 in total fees on a ā¬170 order (VAT + duties + DHL handling fee). One thing I'd recommend - if you have the tracking number, you can sometimes see which courier service will be delivering it. Different companies have different handling fees, so at least you'll know what to expect. DHL tends to be the most expensive for handling fees but they're usually pretty quick with the customs clearance process. Also, don't panic if the tracking shows "held by customs" for a few days - that's totally normal. They're just processing the paperwork and calculating the fees. You should get contacted within 2-3 business days with payment instructions.
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