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Hi Mark Kohler here with a two-minute tax and legal tip Now in my opinion every small business owner at some point should consider converting to an s corporation now Ill address some of the naySayers and their issues Briefly at the end of this video but lets talk about the two big reasons first asset protection and second tax Savings now asset protection comes down to the typical reason why a sole proprietor might incorporate and thats to get protection from the operations of your business that typical corporate veil Asset protection thats important with any small business owner that might have some risk going on in their business But the second main reason is taxanes And I love this its a huge reason why s corporations make sense for the small business owner C if youre operating as a sole proprietorship or a single-member LLC or Even multiple partners in an LLc if you have ordinary income all of the net income Attributed to the owners is going to be subject to self-employment ta