Quote:
Originally Posted by epitome
Yup. I have an LLC setup to be taxed as an S-Corp. This allows me to pay myself a reasonable salary, which will include all of the usual tax, SSI, medicare, etc. deductions and I am also entitled to take out money as a member that doesn't have to have social security and medicare taken out of it.
Only downside is that in this state you have to have unemployment insurance what that arrangement even if the only employees are also members. So I do pay 2.7% that I wouldn't normally pay, but considering I'm saving roughly 15 or 18% or whatever on what's not taken out as salary, I end up better off.
I also have an individual health insurance insurance policy, but my company pays it for me and the amount comes across onto my W-4 tax free.
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you aren't actually "saving" it, you use a "trick" to contribute less to your SS, so when you retire in 30 years you will for example get $1k/month a month, instead of $2k you would normally get... so in a way you are saving now, but fucking up your retirement...
it's a bit more complicated than this, you actually do save a little due to many reasons, but when you consider all the overhead, all the accounting fees, all the drama, paperwork you have to deal with, etc, the saving is trivial if any at all
