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The Hidden Costs of Becoming an S Corp
Episode 6822nd October 2025 • Creative Minds, Smart Money: Finance & Business Tips for Creatives • Samantha Eck | Bookkeeper for Creatives
00:00:00 00:12:55

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Everyone online makes becoming an S-Corp sound like the ultimate financial glow-up: lower taxes, more legitimacy, instant upgrade. But here’s the truth—jumping in too early can actually hurt your business more than it helps.

In this episode of Creative Minds Smart Money, I break down the real dangers of switching to an S-Corp before you’re ready. From payroll requirements to higher admin costs to IRS scrutiny, we’ll cover what you need in place before making the leap, and a checklist to know when the timing is actually right.

In this episode, we cover:

✅ What an S-Corp really is (and what it’s not)

✅ Why becoming your own payroll provider can be overwhelming if you’re not ready

✅ The hidden costs: payroll software, CPA fees, tax filings, compliance

✅ Why “reasonable salary” is a legal gray zone and how it can trigger IRS red flags

✅ Why tax savings aren’t always worth the stress (especially under $60K net profit)

✅ A clear checklist to know when you’re actually ready to elect S-Corp

✅ What to do instead if it’s too early (and how to prep your business for the switch later)

If you’ve ever wondered whether becoming an S-Corp is right for you, this episode gives you the clarity to make that decision without pressure, panic, or FOMO.

🎧 Hit play now and find out whether an S-Corp is your next smart move—or just an expensive distraction.

🔗 Resources & Links

Website: https://www.firestormfinance.com/

Instagram: https://www.instagram.com/firestormfinance/

Threads: https://www.threads.net/@firestormfinance?hl=en

LinkedIn: https://www.linkedin.com/in/samantha-e-8796b6176/

Newsletter: https://www.firestormfinance.com/newsletter


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📢 If this episode gave you clarity about S-Corps, share it with a friend and leave a review—it helps more creatives make confident money moves.

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