Incwell Tax & Consulting

Are you overpaying the IRS?

Most new business owners start as a Single-Member LLC. It is simple, flexible, and easy to maintain. But as your revenue grows, the “Self-Employment Tax” (15.3%) can eat away at your hard-earned capital. The S-Corp Advantage By electing S-Corporation status, you can split your income between “Salary” (subject to employment taxes) and “Distributions” (not subject to employment taxes).

Scenario: You make $100,000 net profit.

As an LLC: You pay self-employment tax on the full $100,000.

As an S-Corp: You pay yourself a reasonable salary (e.g., $60,000) and take the remaining $40,000 as a distribution. You save the 15.3% tax on that $40,000.

Is it right for you? S-Corps come with strict payroll requirements and reasonable compensation rules. If you are generating over $60k-$80k in net profit, it is time to have a conversation. Let’s analyze your entity structure. Click here to request a consultation.

Tax Prep vs. Tax Planning: Why April 15th is Too Late to Save Money.

Many taxpayers believe that tax season begins in January. The reality is, by the time the new year arrives, the window for reducing your tax liability has largely closed. At Incwell Tax & Consulting, we distinguish between Tax Preparation (recording history) and Tax Planning (creating your future).

The Difference That Matters

Tax Preparation is the act of compiling your records to satisfy the IRS. It is a compliance requirement.

Tax Planning is the proactive strategy of arranging your financial affairs—investments, expenses, and timing—to minimize your tax liability within the bounds of the law.

Who Needs Tax Planning? If you only have a standard W-2 job, your options may be limited. However, if you fit any of the following categories, a “filing-only” approach often results in overpayment:

Investors: Do you hold Crypto, RSUs, or actively trade stocks? Wash-sale rules and capital gains timing can significantly impact your bottom line.

Real Estate Owners: Are you maximizing depreciation or considering a 1031 exchange?

High-Income Earners: Have you fully utilized tax-advantaged accounts beyond just a 401(k)?

Our Approach We work with clients year-round to identify credits and deductions before the year ends. Our goal is not just to file a return, but to construct a tax position that preserves your wealth.

Don’t leave your strategy to chance. Request a consultation today to review your current portfolio and upcoming tax liability.