What exactly is an
S Corp?
An S Corp is a tax status that can lower your taxes and save you money as a business-of-one. We'll explain how.
Without an S Corp, you’re overpaying your taxes
As a business-of-one, by default your self-employment taxes–which covers things like Social Security and Medicare–are twice what they would be as a W2 employee.
Unlock tax savings with an S Corp
An S Corp is a tax classification that lets you be both the owner of your company and its sole employee. This means you pay yourself a salary as an employee, and also collect profit as an owner. Those profits aren’t subject to self-employment tax, saving you thousands.
Who is an S Corp for?
You are a business-of-one in the US.
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You are committed to working for yourself.
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You make at least $60,000 a year.
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S Corps reduce your self-employment tax
By collecting profits as the Owner of your S Corp, you save thousands on self-employment taxes every year.
*Your actual tax liability depends on more factors (like spouse income or capital gains)
Lower your taxes. Maximize your profits.
If you’re a business-of-one making over $100k, you could be overpaying your taxes by as much as $10,000.
Calculate Your SavingsLettuce is the only automated S Corp solution
Money saved
on average for businesses-of-one
Time saved
saved per month
Solutions needed
for your S Corp creation and maintenance
Lettuce supports your whole business
Incorporation
Incorporation
Lettuce initiates your S Corp setup in minutes and handles all the paperwork.
Banking
Banking
Our system integrates with your bank to seamlessly manage all of your business finances.
Accounting
Accounting
Say goodbye to tax day dread. Lettuce will make sure you miss a deadline again.
Bookkeeping
Bookkeeping
Our automated expense tracking and financial reports slash hours from your bookkeeping.
Tax Optimization
Tax Optimization
Lettuce works on your behalf all year long to maximize savings and minimize your tax burden.
Payroll
Payroll
S Corps are required to run official payroll for your salary, even if you're the only employee. Lettuce automates for you.
See how much you could save with an S Corp
Forming an S Corp can help you minimize your taxes and maximize your profits. Use our calculator to find out how much could you be saving.
Calculate Your SavingsFree VIRTUAL EVENT
Join our S Corp Info Session
Join us for a free online workshop to ask questions about how an S Corp could be right for you.
Gabrielle Tenaglia, Speaker
Lettuce Head of Marketing & S Corp Owner
RSVP to Secure a Spot
Reserve your spot now to learn everything you need to know about S Corps.
Lettuce pays for itself in months
Your tax savings are guaranteed* with Lettuce (or we will refund your fees), so a subscription quite literally pays for itself, and then some. Plus, Lettuce is completely tax deductible.
Lettuce Pro
$299 /mo.*
No credit card required Cancel anytime without penalty 100% tax deductible You don’t pay until your |
FAQs
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How do I know if Lettuce is right for me?
Lettuce is a good fit for you’re dissatisfied with a manual accounting and focusing on deductions as tax strategy.
Lettuce is specifically for businesses-of-one based in the U.S., focused on selling services--consulting, creative work, software development, therapy, legal services are all great examples.
You can be set up as a sole propietor or as an LLC and your business can be new or existing.
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What makes Lettuce unique from other solutions for businesses-of-one?
Lettuce is the only automated S Corp solution. No other platform offers this uniquely specialized guidance, and automates the work for you.
First, we exclusively specialize in taxes and accounting for businesses-of-one. Our recommendations are tailored to your needs, and personalized for each individual business based on what you earn, what you spend, and what your goals are.
Second, we do it all with modern technology. There is no off-shore accountant group involved, just a team of dedicated technology professionals, working hard to solve your challenges.
With Lettuce you can focus on running your business instead of spending your time on bookkeeping and accounting.
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How much time does it take to set up Lettuce?
It takes about five minutes to provide Lettuce with all of the information that is needed to set up your business as an LLC, file your S Corp Election, and open your business bank account. From there, Lettuce handles all of the paperwork and set up on your behalf.
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Is Lettuce difficult to use?Lettuce is simple and intuitive. There's no complex software to learn or complicated functionality, so you can focus on your business and not your accounting.
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How often do I have to use Lettuce?
This depends a bit on how you want to run your business. You can login as often as you like to look at your income and on how your deductions are being classified, or just check-in once a month
Each quarter, you will have quarterly taxes to approve and pay, or you can choose to automate this with Lettuce. Towards the end of the year, Lettuce will balance your salary and owner's distribution based on your total income, and prepare your business tax return for you to approve. All of this takes minimal time, about thirty minutes every month.
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I read about the Lettuce Guarantee. How does it work?
We are so confident in our work that if you don’t save on your taxes, we will refund your fees. To learn more, see our Guarantee page.
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What is the difference between S Corp, LLC, Sole Proprietorship?
Sole proprietorship is the default mode of many businesses-of-one. If you do nothing to officially set up your business with your state of operation, you file as a sole proprietor by default. Sole proprietorship is easy to maintain, but offers no liability protection or tax benefits.
An LLC takes some effort to set up and has some compliance requirements, and also offers you liability protection if you correctly separate your personal and business finances.
An S Corp is a tax status that you file with the IRS. It allows you to significantly reduce your self employment taxes (saving thousands), and also has some complex compliance requirements. Lettuce takes care of all of this for you. To learn more, read our blog posts on the differences between sole proprietorships and LLCs, and on the benefits of S Corps.
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How are doing my taxes and making quarterly estimated payments different with Lettuce?
Instead of crunching at tax time, Lettuce is managing your taxes proactively every day, looking at every dollar of income and expense automatically.
Everything is kept updated in real time throughout the year, so that your balance with the IRS is as close to zero as possible. The work and anxiety around tax season disppears with Lettuce. When the time comes, we will send you all the info needed to file your tax return, including the business tax filing form 1120S and Schedule K1.
Additionally, Lettuce automatically sets aside money from each client payment for your quarterly taxes, making it simple to make your estimated payments.
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How does Lettuce ensure accuracy for quarterly or yearly taxes?We guarantee the accuracy of our work. If our work is challenged by the IRS, we’ll be first in line to defend it at no charge to you. If you’re audited by the IRS, Lettuce will assist you through any audit. Lettuce will also refund you for any IRS penalty or interest, or any re-filing based on a discrepancy in any work we’ve done.
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Are my personal and financial data secure with Lettuce?
We take data security and privacy extremely seriously at Lettuce. Lettuce ensures the highest security standards for your financial data, using encryption and secure protocols. Our approach to product development ensures our customers are in control of their data and that their information is safe at all times.
Additionally, our Lettuce guarantee provides assurance that your taxes will be accurate and that we'll defend our work if challeneged by the IRS. Each bank account is FDIC insured up to $250,000.
Related Resources
Self-Employment Tax Essentials: Transitioning from Employee to Business-of-one
Interested in S Corps? Here’s the Lowdown on Maximizing Your Tax Benefits!