Skip to main content

§ INDUSTRY · Solopreneurs

BOCA RATON · UPDATED MAY 2026

Schedule C today. S-Corp when the math says yes.

Simple monthly close, quarterly estimates, §199A QBI optimization, and the S-election when your net SE income clears ~$60K. IRS notice response on returns we prepare.

You file 1099s, you're your own boss, and TurboTax has been mostly fine. But quarterly estimates keep tripping you up, the home-office question is murky, and someone in a Facebook group told you to S-Corp immediately. The honest answer is: probably not yet. We watch the line with you and pull the trigger when the savings cover the complexity.

The vocabulary unique to your industry

Forms, acronyms, and deadlines we know cold.

Schedule C
Profit or Loss From Business. Where sole-prop and single-member LLC income lives on your 1040. Reports gross receipts, expenses, and net income subject to SE tax.
SE tax (15.3%)
Self-employment tax — 12.4% Social Security up to $168,600 (2024) plus 2.9% Medicare on all earnings. This is what the S-Corp election eventually mitigates.
Form 1040-ES
Quarterly estimated-tax vouchers. Due April 15, June 15, Sept 15, Jan 15. Penalties under §6654 hit when you underpay.
§199A QBI (20%)
The 20% Qualified Business Income deduction. Available to Schedule C filers below the income thresholds; SSTB phase-outs kick in at $191,950 single / $383,900 MFJ in 2024.
Self-employed health-insurance deduction
Above-the-line deduction for health-insurance premiums paid by the self-employed (not available if you're eligible for a spouse's employer plan).
Solo 401(k)
Owner-only retirement plan. $23,000 employee deferral (2024) + up to 25% of net SE income as profit sharing.
Form 2553 / Rev. Proc. 2013-30
The S-Corp election form and the procedure that allows late S-elections up to 3 years and 75 days retroactively.

How our three services apply to you

Three pillars, tuned to your industry.

§ 01 · Bookkeeping

Simple monthly close · receipt tracking · biz/personal separation · clean P&L so you actually know what you make.

§ 02 · Tax

1040 + Schedule C + quarterlies · §199A QBI optimization · home-office and self-employed health-insurance deduction · the S-Corp decision when net clears ~$60K.

§ 03 · IRS Help

Routine IRS notice response on returns we prepared: CP2000 letters (unreported 1099 income) · estimated-tax penalty notices · math-error notices · CP14 / CP504 balance-due correspondence.

The S-Corp angle

When the math says yes.

You're not an S-Corp yet — and that's fine. The math doesn't work below roughly $60K net SE income because the payroll, separate 1120-S return, and reasonable-comp memo cost more than the SE-tax savings. We watch the line with you. When you clear the threshold, we walk through the election (or use Rev. Proc. 2013-30 to elect retroactively if you missed the window) and the savings cover the complexity. No pressure to "incorporate immediately" — that advice is usually wrong.

§ Pricing

Flat fees. No hourly surprises.

  • Bookkeeping

    from $325/mo

  • 1040 + Schedule C

    from $450

  • "Should I S-Corp?" analysis

    $400 flat

§ FAQ

Do I need an LLC to be a freelancer?

No. You can legally freelance under your own name as a sole proprietor — no formation paperwork, no state filing fees, just a Schedule C on your 1040. An LLC adds two things: liability protection (your personal assets are shielded from business creditors and lawsuits, assuming you maintain the formalities) and a clean business identity. What an LLC does not do is change your taxes. A single-member LLC is a "disregarded entity" by default — same Schedule C as a sole prop. The tax change happens only when the LLC also elects S-Corp treatment via Form 2553. LLC + S-election is the structure that changes the math.

When should I become an S-Corp?

Roughly when your net SE income reliably clears $60K and you can pay yourself a defensible W-2 salary while still leaving meaningful distributions. Below $60K, the added cost — running payroll, filing the 1120-S, writing the annual reasonable-comp memo, the second tax return — typically outweighs the SE-tax savings. Between $60K and $80K is the judgment zone. Above $80K, the math strongly favors S-Corp. We model your specific number. If you missed the 75-day election window after forming, Rev. Proc. 2013-30 lets us elect retroactively up to 3 years back — see our Late S-Election page.

What's the difference between an LLC and an S-Corp?

An LLC is a state-law entity — formed by filing articles with your secretary of state, providing liability protection between you and your business. An S-Corp is a federal tax election, not an entity — you elect it via Form 2553 on top of an existing LLC or corporation. The LLC by itself is taxed as a disregarded entity (single-member) or partnership (multi-member). When you S-elect the LLC, the LLC itself doesn't change, but now its income flows through via Form 1120-S and K-1, and the owner takes a W-2 salary plus distributions. The LLC handles liability; the S-election handles tax.

Quarterly estimates — what happens if I skip them?

IRC §6654 imposes an underpayment-of-estimated-tax penalty. The penalty rate floats with the federal short-term rate plus 3% — currently around 8% annualized in 2024 — and it's computed quarter-by-quarter on the shortfall. Two safe harbors avoid it: pay at least 90% of the current year's tax in estimates/withholding, OR pay 100% of last year's tax (110% if AGI exceeded $150K). Skipping estimates entirely on a year you owe $20K of tax can cost $1,500–$2,000 in penalty plus interest. We compute estimates after each quarter based on your YTD numbers so you're paying the right amount, not just guessing from last year.

Can I deduct my home office?

Yes, if you use the space regularly and exclusively for business. Two methods: the safe harbor at $5/sq ft up to 300 sq ft (so $1,500 max, no depreciation, no records of utilities required) and the actual-expense method, which allocates a percentage of rent or mortgage interest, utilities, depreciation, insurance, and repairs based on the business-use square footage. The actual-expense method usually saves more if your home is expensive, your office is large, or you own the home (depreciation adds up). The catch on the actual method for owners: depreciation recapture when you eventually sell. We do the math both ways and pick the better one.

Ready to talk?
A 30-minute scoping call costs nothing.

Free 30-minute call to confirm fit. If we are the right firm for the work, we send a written scope and a flat fee. If we are not, we point you elsewhere.

(561) 334-4066

KDM Accounting

Free Consultation

Tell us what you need. We'll call within one business day.

Prefer to call? (561) 334-4066