Whether a partnership, an S corporation or another structure is best for a business can change over time, so a structure checkup is a good idea.

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In addition to income tax, you must pay Social Security and Medicare taxes on earned income, such as salary and self-employment income. The 12.4% Social Security tax applies only up to the Social Security wage base of $118,500 for 2016. All earned income is subject to the 2.9% Medicare tax.

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