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Question: I found a person for my taxes but she's not a CPA. She seems to be good but not sure if I should stick with her since she's not a CPA.
My story:
I work full time making about $95K a year. I also have a side business LLC that produces $50K a year.
I met with a friend's tax accountant who he says has saved him a large amount of money.
I met with her and she suggests that I change the filing status of the LLC to "filing as S-Corp" so I will save 15% from not having to pay self employment tax on the $30K. My salary in the $50K is $30K so this sounds like I'd save $4500 a year. Her cost is $2000 for corp filing and $200 for individual then $100 per quarter for payroll [Total of $2600].
So my salary of the business is $30K and it's producing $50K. How is the money above $30K taxed?
Also for the information of this post - my income should increase about 10-15% per year hopefully.
She has already identified areas where I can save money and made some good suggestions. I am worried that she is not a CPA. Is this something I should be concerned about or is it just a few letters? Also - does this sound like the right route to take with the filing to save self employment tax?
Should I stick with her even though she's not a CPA but charges like a CPA?
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