In 2026, a Florida LLC can generally reduce self-employment tax by electing S-corp tax treatment and paying the owner a “reasonable salary” subject to FICA while taking remaining profits as distributions. Florida’s lack of a state personal income tax makes the federal payroll tax planning around S-corp status especially impactful for owner-operators. This article explains […]
Florida LLCs can elect S corporation tax status by filing IRS Form 2553—typically within 75 days of formation or by March 15 for a calendar-year entity—without changing the LLC under Florida law. In 2026, the biggest risks are late/invalid elections, ineligible ownership, and payroll and accounting missteps that invite IRS reclassification. This article explains the
In California, an S‑corp can reduce self‑employment tax because only “reasonable compensation” paid as W‑2 wages is subject to FICA, while the remaining 2026 profits may be distributed outside payroll taxes. This structure is most effective for owner‑operators who can document market‑rate salary, maintain payroll compliance, and separate wages from distributions. This article explains how
California small businesses must use AB 5’s ABC test to classify most workers in 2026—unless a specific statutory exemption applies. Misclassification can trigger back wages, tax exposure, penalties, and PAGA/representative litigation. This article provides a practical contractor-vs-employee checklist, key exemptions, industry examples, and compliance steps for California employers. Why AB 5 Still Matters for California
