Schedule C vs. S-Corp

A Schedule C is simple and often the right home for a newer or lower-profit business. But as profit grows, the self-employment tax it carries becomes a real and avoidable cost. An S-corporation election — done at the right profit level, with a defensible salary, and run properly — can turn a meaningful slice of that tax into savings year after year. The key word is “properly”: the election rewards businesses that handle the salary and compliance correctly, and punishes those that don’t.