"I'm a single person LLC with practically zero expenses (I paid a whopping $3k for my MacBook and made $700k), so Uncle Sam is going to get his money. I save a bit based on marginal tax rates, but pretty much I'm SOL because the tax system doesn't understand how a single guy can make so much."
Thats a huge tax deduction and I look forward to writing off my subcontractors from the tax I have to give to Uncle Sam.
Electricity, phone, internet.
If he worked at home, then part of his rent.
Travel if he worked at home and at an office.
I don't believe this is really true, would love to find some examples though.
The real benefit of S-Corp is to shift the cashflow from earned income (subject to self-employment taxes) to profit distributions (not subject to SE tax). But you pay the same Federal income tax on both. However, whether an S-Corp is worth it financially depends on a lot of factors, including how much you make, what constitutes a reasonable salary, your risk tolerance, and how your state taxes these different forms of income.
Had a windfall years ago and really regret not doing this.
No self employment tax on distributions from an S Corp.