Open a separate checking account for payroll taxes and move money there every time you pay yourself. You won’t accidentally blow tax money on business stuff. I did that once - not fun. S-Corp pays for itself fast if you’re making good money. Don’t overthink your salary the first year. Pick something reasonable and stick with it until you get the hang of things.
Yeah, the paperwork jump is real. I switched 18 months ago and remember feeling totally overwhelmed.
What helped me:
Started simple with payroll - picked a reasonable monthly salary and stuck with it the first year
Used basic payroll software - way easier than calculating everything manually
Simple system for quarterly stuff - just a basic spreadsheet tracking what’s due when
The stress fades after your first full year of filings. First few quarters you constantly feel like you’re missing something important.
Unexpected benefit - that clear separation between business and personal finances made my bookkeeping way cleaner. Forces you to stay organized.
Don’t overthink the salary thing. As long as it’s reasonable for your industry you’re fine. You can adjust it later once you’re comfortable with everything.
The stress is totally normal. I jumped three years ago and spent months second-guessing everything.
Payroll was my biggest headache. You’ve got to figure out reasonable compensation since the IRS wants to see you paying yourself a salary. I started with industry averages and tweaked from there.
Quarterly filings become routine after a few cycles. Simple calendar reminders and a folder with all the forms - that’s it. The 941s aren’t bad once you get the hang of it.
One thing that saved me - I set aside payroll tax money in a separate account the moment I pay myself. Learned that the hard way when Q1 taxes hit.
The legitimacy feeling is real though. Clients take you more seriously and business banking opens up options that weren’t there before.