The Entity Planner Tool comes with the Professional and Platinum subscriptions.
It allows you to identify whether an S Corp or pass-through entity (Schedule C, LLC, and Partnerships) is more beneficial for your client where all net profit is subject to Social Security and Medicare taxes. When run with a Reasonable Compensation Report, it can generate an Entity Plan Report as a deliverable for your client.
Using the Entity Planner without a Reasonable Compensation Report
Navigate to the Tools tab and select Entity Planner
Input the required parameters.
If desired, specify the forecasted growth or decline of your client’s Profit and/or Compensation.
NOTE: To view more information for each parameter, hover over
NOTE: Required fields include Total Annual Net Profit, Reasonable Compensation, Estimated FUTA & SUTA Tax.
Scroll down to view the results which include 10 Year Projected Cost Savings and associated graphs.
Generating an Entity Plan Report with a Reasonable Compensation Report
Navigate to the Clients tab and select the Reasonable Compensation Report you will be running the Entity Plan for.
Select Generate ESP in the Sub Reports section.
Input the required parameters.
NOTE: The Reasonable Compensation field will contain the wage associated with the client’s reasonable compensation report and is not editable.
If desired, specify the forecasted growth or decline of your client’s Profit and/or Compensation.
Select Save Changes.
NOTE: To view more information for each parameter, hover over
NOTE: Required fields include Total Annual Net Profit, Reasonable Compensation, Estimated FUTA & SUTA Tax.
Scroll Up to view the results which include 10 Year Projected Cost Savings and associated graphs.
Select View Report PDF to generate an Entity Plan Report.
Click Here to view and download a sample Entity Plan Report.