How does an S- Corp work?

[InsurancePimp_]

I want to sign up with my S-Corp and not my social security to do Medicare and health insurance.

but I was told I have to do an extra step. I already have an S Corp, but how do I go about getting paid under my s Corp and not my Social?

 

[adjusterjack]

I think your S Corp might have to have it's own agency license to get it appointed instead of you.

See:

Insurance Agency License (myfloridacfo.com)

I suggest you call the Florida DOI and find out for sure.

 

[InsurancePimp_]

Ty

 

[sshafran]

I want to sign up with my S-Corp and not my social security to do Medicare and health insurance.

but I was told I have to do an extra step. I already have an S Corp, but how do I go about getting paid under my s Corp and not my Social?

Yes, get the S-Corp licensed as an Agency (a Business Entity license)

You will be the "designated licensed agent" -- i.e. the "person" who has a license responsible for the "corporation's" activity

Then when you contract with carriers - request a dual contract. You and the S-Corp get contracted, and assign comp to the S-Corp - and the W9 is in the FEIN.

Some states will require both non-res licenses if you go outside of your state - some won't.

 

[sshafran]

Yes, get the S-Corp licensed as an Agency (a Business Entity license)

You will be the "designated licensed agent" -- i.e. the "person" who has a license responsible for the "corporation's" activity

Then when you contract with carriers - request a dual contract. You and the S-Corp get contracted, and assign comp to the S-Corp - and the W9 is in the FEIN.

Some states will require both non-res licenses if you go outside of your state - some won't.

Also always ask the carrier - "which writing number do I use" it's strange I have some I use the corp's, others I use the agent's.

 

[Fire]

Are you taking a salary or dividends out of the s corp? So you can control your w-2 or 1099 to yourself. Does the scorp get a 1099 from the ins carrier ? I know a straight line corp doesn’t .Run a ton of exp’s threw the corp and leave money in their . Thats how a ton of people get zero cost aca as they personally show little income .

 

[sshafran]

Are you taking a salary or dividends out of the s corp? So you can control your w-2 or 1099 to yourself. Does the scorp get a 1099 from the ins carrier ? I know a straight line corp doesn’t .Run a ton of exp’s threw the corp and leave money in their . Thats how a ton of people get zero cost aca as they personally show little income .

S-corp is pass through so the income will show... you can't "leave the money" in there.

Yes, I get a W2 - I have a salary. I also take distributions above and beyond the salary.

You can lower income with a solo 401k - I started that in 2020. Employee can contribute around 19k AND employer can contribute 25% of W2 up to a certain ceiling - it's not too hard to "defer" quite a bit of money. Obviously, consult tax people I'm just a dude on a forum... lol.

 

[sshafran]

So you can control your w-2 or 1099 to yourself.

To clarify this question: Yes, you determine your salary (w2) but it needs to be "reasonable."

You also determine your Distributions - that's the fun part.

No, the S-Corp does not 1099 you - you're an employee...

But as the owner of the S-Corp you get a K1.

 

[Fire]

So are you getting a 1099 from the insurance CO’s yearly in the s Corp name ? The only advantage I can see with a s Corp is you can take a lot if your money out in dividends which is a lower tax rate and no ss taxes . Let’s say you made $300 k in 2021 . Your exp ‘s were $120 k and your w-2 salary $50 k . That’s leaves $130 k left in the S Corp for the yr . Do you have to take a $130 k dividend out for that yr ? You said you can’t “ leave” money in it .

 

[Yagents]

That 130k would be on the K1 and taxable at fed and state level. Avoids SS and MC taxes. Doesn't matter whether you take that 130k of money our of biz account or not.

And trumps tax cut allows you to take 20% off of that 130k. Thanks to our past prez.

The 20% Pass-Through Tax Deduction for Business Owners