WritersBeware: I recommend using the "Complete" S-Corporation package - quote
Hm, how about the recent proposal/changes to S-Corporations taxes? Will the change apply to 'essay writing business' too?
In Congress's latest tax bill, there is a provision which would take away the potential for employment tax savings for certain types of S corporations. The provision eliminates the employment tax savings structure for each shareholder of any "disqualified S corporation" who provides substantial services with respect to a "professional service business."
A "disqualified S corporation" is (i) an S corporation which is a partner in a partnership which is engaged in a "professional service business" if substantially all of the activities of such S corporation are performed in connection with such partnership, and (ii) any other S corporation which is engaged in a "professional service business" if the principal business of such business is the reputation and skill so 3 or fewer employees.
The term "professional service business" means any trade or business if substantially all of the activities of such trade or business involve providing services in the fields of
* consulting,
* engineering,
* investment advice or management,
* brokerage services,
* health,
* law,
* lobbying,
* architecture,
* accounting,
* actuarial science,
* performing arts, or
* athletics.
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