Beating the August Heat: Prepping the Fall & Winter Greenhouse

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August in Alabama is notoriously hot, but if you want a thriving fall and winter harvest, right now is exactly when you need to start getting your hands dirty. Having a greenhouse is a huge advantage for extending the growing season, so I am rolling up my sleeves this weekend to get the fall crop preparation underway. Here is a look at what is going into the dirt this weekend, what is on the schedule for later this fall, and the long game for spring. ðŸŒą What I’m Planting This Weekend The planting window is perfectly timed right now, so these are the priority seeds going into the setup: Baby Broccoli: I just picked up these seeds, and they are going straight into the dirt! The window for broccoli closes by mid-August, and it is well-suited for direct seeding into the soil rather than using transplants. Spinach: The window also closes by mid-August. Because spinach has shallow roots, these seeds are going straight into the vertical stackable planters. Leaf Lettuce: Perfect for plantin...
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📆 Day 19: When to Consider Becoming an S-Corp

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📆 Day 19: When to Consider Becoming an S-Corp

Your guide to smarter tax strategy and structured growth

If you're running a profitable small business or side hustle and wondering how to optimize your tax structure, the S-Corp election might be worth a closer look. But it’s not a one-size-fits-all solution—and timing matters.

Let’s break down when it makes sense to consider becoming an S-Corp, and when it might be premature.

🧠 What Is an S-Corp?

An S-Corporation (or Subchapter S Corporation) is a tax designation—not a legal entity type. You must first form an LLC or C-Corp, then elect S-Corp status with the IRS using Form 2553.

The key benefit? S-Corps are pass-through entities, meaning profits flow directly to shareholders and are taxed at individual rates. But unlike sole proprietors or standard LLCs, S-Corp owners can avoid self-employment tax on a portion of their income.

✅ When It Might Be Time to Elect S-Corp Status

Here are some planner-friendly checkpoints to help you decide:

1. You're Netting $50K+ in Annual Profit

  • Below this threshold, the cost of payroll setup, bookkeeping, and filing Form 1120-S may outweigh the tax savings.
  • Above it, the self-employment tax savings can be significant.

2. You’re Ready to Pay Yourself a “Reasonable Salary”

  • As an S-Corp owner, you must run payroll and pay yourself a fair wage based on industry standards.
  • This salary is subject to FICA taxes, but profits beyond that are not.

3. You’re Comfortable With Added Compliance

  • S-Corps require separate tax filings, payroll tax deposits, and shareholder reporting (Schedule K-1).
  • If you already have a CPA or payroll system in place, this may be a smooth transition.

4. You Don’t Have Foreign Investors or Multiple Stock Classes

  • S-Corps must have fewer than 100 shareholders, all of whom are U.S. citizens or residents.
  • Only one class of stock is allowed.

ðŸšŦ When to Hold Off

  • Your business is still in early growth mode (e.g., netting under $20K/year).
  • You have foreign partners or investors—S-Corp status isn’t allowed.
  • You live in a state with unfavorable S-Corp treatment, like NYC or Tennessee.
  • You already max out Social Security taxes via a W-2 job—your S-Corp savings may be minimal.

ðŸ§Ū Planner’s Tip: Run the Numbers First

Before electing S-Corp status, build a decision matrix:

  • Compare your current tax liability vs. projected S-Corp savings.
  • Factor in payroll costs, software, and CPA fees.
  • Consider your long-term goals—are you scaling, hiring, or staying lean?

✍️ Final Thoughts

Becoming an S-Corp can be a powerful move for tax efficiency and professional credibility—but only when the timing and structure align. If you're already tracking profits and planning for growth, this might be your next strategic step.


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