The Rainmaker's Relief: S-Corp Election for a Law Professional

Executive Summary

High-income professionals often overpay taxes by operating as Sole Proprietors. A successful litigation attorney was paying 15.3% Self-Employment tax on his entire $3M net income. Fynex filed a retroactive S-Corp election, split his income into 'Reasonable Salary' and 'Distribution', and legally erased $50k in annual tax liability.

The Landscape: Legal Context

The IRS allows S-Corp owners to take distributions free of FICA tax, provided they pay themselves a market salary.

The Breaking Point

"My accountant never told me I could incorporate."

ESq

Partner

Boutique Law Firm

He was writing a $200k check to the IRS every April and hating it.

The Fynex Protocol

We set his salary at $300k (market rate for a seasoned lawyer). The remaining $2.7M was treated as distributions.

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Technical Implementation

We engaged a payroll provider to handle the W-2 compliance.

Verified Outcomes

Take Home Pay Increase

Audited

Immediate cash savings of $45,000 in Medicare/Social Security taxes.

Future Horizon

Setting up a Cash Balance Pension Plan.