Title: LLC vs S-Corp for Contractors: The Real Tax Breakdown

Summary:

In this episode of the Savvy or Surrender Podcast, Steven Young cuts through the misinformation about S-Corps and provides contractors with a detailed, real-world comparison between LLC/sole proprietor taxation and S-Corp taxation. Using actual tax returns as examples, he demonstrates exactly where the tax savings come from, what "reasonable compensation" really means, and when an S-Corp makes sense for your contracting business. This isn't generic advice—it's a line-by-line breakdown showing a contractor saving nearly $11,000 in taxes while explaining the compliance requirements, QBI deductions, and hidden costs that most "tax gurus" don't mention.

Timestamps:

• [0:00] Introduction: Why S-Corp advice can be dangerous
• [1:18] LLC vs S-Corp: Understanding the legal and tax differences
• [4:10] How to elect S-Corp status with Form 2553
• [7:26] How S-Corps change your taxes: Wages vs distributions
• [9:00] Reasonable compensation: What the IRS expects (and doesn't define)
• [13:17] QBI deduction: How it works differently for LLCs vs S-Corps
• [16:26] When S-Corps are a BAD idea (under $50-75K profit)
• [19:56] S-Corp compliance: Deadlines and penalties you need to know
• [20:22] Real case study: Craig's Landscape tax return breakdown
• [28:45] The verdict: $10,689 saved (39% tax reduction)
• [30:00] What to do with your tax savings: Investment strategies

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The Roofer Who Made $50K More Without Increasing Revenue: A Profit First Case Study

Overall Summary:
In this episode of Savvy or Surrender, host Steven Young breaks down a real-world case study of a roofing company generating over $1.2 million in revenue but still feeling broke at year's end. Through implementing the Profit First methodology and the Savvy Path to Cash system, this business increased owner pay by $25,000 and net profit by $25,000—without changing their revenue. Steven reveals how proper cash flow management, strategic account allocation, and expense optimization can transform a high-revenue business into a truly profitable one.

Key Timestamps:

• [0:00] Introduction: The million-dollar revenue problem
• [4:32] Introducing Profit First methodology
• [7:53] The Savvy Path to Cash solution
• [12:16] Case study results: before and after breakdown
• [17:11] Introducing the Savvy Boss program
• [18:17] The critical question: would your business survive if revenue stopped growing?

Keywords:
Profit First, cash flow management, contractor, bookkeeping, roofing business profitability, small business financial management, tax planning for contractors, business expense optimization

Hashtags:
#ProfitFirst #CashFlowManagement #ContractorFinance #SmallBusinessTips #BusinessProfitability #SavvyOrSurrender #EntrepreneurFinance #FinancialPlanning

Contact & Resources:

• Schedule a free discovery call: meetwithsavvy.com
• Email: podcast@savvytaxstrategies.com
• Website: savvyorsurrender.com

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Summary:

Thinking about starting a business in 2026? Before you dive in, you need to understand the tax implications and financial realities of entrepreneurship. In this episode, Steven Young from Savvy Tax Strategies breaks down the critical difference between startup costs and operating expenses, using two real-world case studies: becoming a realtor or buying a franchise.

Steven shares honest insights about the emotional rollercoaster of business ownership and explains why some expenses can be deducted immediately while others must be capitalized and amortized over years. Whether you're considering a low-capital business like real estate or a capital-intensive franchise, this episode will help you understand what's truly deductible, what must be depreciated, and how to set yourself up for financial success from day one.

[0:00] Introduction: Why people start businesses at the beginning of the year

• [0:36] Should you be a business owner? The emotional reality
• [1:54] Real stories: When business ownership doesn't work out
• [3:33] The ups and downs of entrepreneurship
• [4:14] Choosing your business entity structure
• [5:35] The two critical timelines: Before vs. after starting
• [6:19] Case Study #1: Becoming a realtor
• [7:16] The 5 core tax rules every business owner must know
• [8:44] What "capitalized" really means
• [10:00] Section 179 and equipment deductions
• [10:54] Subscribe and leave a review!
• [11:34] The IRS taxes the timeline, not your intentions
• [11:54] Realtor licensing costs: What's deductible?
• [13:22] Pre-licensing vs. post-licensing expenses
• [14:09] Ongoing realtor expenses you CAN deduct
• [14:31] Can you deduct clothing, hair, and makeup?
• [16:00] Equipment, home office, and the $2,500 safe harbor rule
• [17:11] Home office deduction: Standard vs. itemized
• [19:01] Case Study #2: Franchise startup
• [19:37] Using retirement funds (ROBS) to buy a franchise
• [20:39] What must be capitalized in a franchise
• [22:18] Section 179 for tangible equipment
• [23:47] Post-opening deductible costs
• [24:26] Side-by-side comparison: Realtor vs. Franchise
• [24:36] Real story: The nurse who lost his retirement
• [25:37] Success story: ROBS loan + Profit First system
• [26:18] Introduction to Profit First methodology
• [27:03] Closing: Free discovery call offer

SEO/ Keywords:
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Hashtags:
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