Entity Comparison Example-Florida

Example Assumptions:
Total profit before owners salary	$ 70,000
"Reasonable owner salary"	$ 30,000	(get comps at www.salary.com or www.payscale.com)
Business net income	$ 40,000
No other personal income or spouse income

		Sole Prop.	S Corp	C Corp	Ptnrshp	LLC
Tax Costs
Self employment 15.3% of $70,000		10,710	-	-	10,710	10,710
FICA 7.65% x 2 of $30,000		-	4,590	4,590	-	-
FL Unemployment 2.7% 1st $7,000		-	189	189	-	-
Federal Unemployment .8% of first $7,000		-	56	56	-	-
FL C corp tax 5.5% net income > $5,000		-		1,925	-	-
Fed Corporate income tax 15% $40,000		-		6,000	-	-
Personal income tax $70,000 (10%, 15% & 25%)		10,188	10,188	3,698	10,188	10,188
Extra personal income tax for C corp dividends		0	0	2,490	0	0

Total tax costs		20,898	15,023	18,948	20,898	20,898
Tax savings over sole proprietor			5,875

Professional Fees:
FL State filing--one time cost		50	79	79	50	125
FL State filing--annual		0	150	150	0	50
Incorporation documents--one time cost-mycorporation.com		0	230	200	0	232
Payroll tax documents/separate tax return--annual costs		0	1,200	1,200	1,200	1,200

Total professional fees		50	1,659	1,629	1,250	1,607

Total tax and professional fees		20,948	16,682	20,577	22,148	22,505
Total cost savings over sole proprietor-1st year			4,266
Total cost savings over sole proprietor-after yr 1			4,575