The Doula Business Advisor: Should Doulas Form an S Corporation?

My regular Tuesday blog is designed to support the establishment and long-term sustainability of private doula businesses and doula programs. Excerpted from my book, The Doula Business Guide-Creating a Successful MotherBaby Business (available September 2010!).

S Corporations

The S Corporation is a more complicated business structure than the sole proprietorship or limited liability corporation. Doulas just starting out are advised to avoid the extra hoops, expenses, and reporting requirements involved. However, once a sole proprietor or LLC is netting $30,000 per year or more in profits (and thus paying 15.3% FICA taxes on that amount), then there are significant tax advantages to switching over to the S Corporation structure. Consult a knowledgeable accountant to determine whether or not doing so would be to your benefit. The switch can save you thousands of dollars each year, thereby more than covering the accountant’s fees involved.

Posted by Patty on August 10, 2010 • Filed under Doula Business Advisor (Tuesdays)
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