Scorp setup to receive sole prop payments
I have a sole proprietorship with several employees. In business for over 15 years...I want to significantly reduce the amount of self employment taxes that I pay on my profits. My EIN for the sole proprietorship is attached to many things, so for that reason amongst other reasons I do not want to form an S Corp to REPLACE my existing business...My question is am I able to form an S Corp as a separate entity as maybe a consulting company, and have the sole proprietorship pay that consulting company large fees equal to or close to what the sole proprietorship revenues are? I understand that on the S Corp side ill be required to draw a salary and pay payroll tax on the salary but no SE tax on the revenues ..is what I am proposing legal?
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