According to what I've just discovered, it may be possible to reduce your taxes by forming an S Corp instead of just dealing with the self employment tax structure as is. What are some of the benefits of forming an S Corp?
- Potentially lower self employment taxes.
What are some of the risks?
- Additional IRS scrutiny if you're making a decent amount of money (more than the usual).
- Additional state taxes in places like California.
Conclusion
I don't think S-Corps are for everyone. They are legally complicated and make sense if you have the time and money to hire a legal professional to set you up appropriately and hire an accountant to make sure you handle everything right. Accounting is very difficult in cryptospace and Steemit may attract scrutiny from the IRS just by how it is set up. If a person can afford to hire the professionals then why not but if they are a small blogger it probably isn't worth it. Nothing I say should be taken as legal advice as I'm not a lawyer or legal professional.