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Originally Posted by PersianKitty
With an S-corp you pay yourself a set salary which comes off the bottom line (including ss and medicare taxes), file an informational return with no tax payment on the corp. Net income passes over to the individual through a Schedule E. The net income is not subject to self-employment taxes.
(was going to edit the above post but my 3 minutes ran out)
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I can do the same thing with a LLC. Take a salary and pass the rest around the SE tax. Pretty big savings right there.
Was looking at a c corp but wow they nail you on the corp taxes. Then a dividend tax ouch. But the corp could invest in real estate or other things and not pass on the cash. Company car etc. So there is some stuff I could do. Trying to restructure in a tax efficient manner.
I usually post plan taxes in that i work 364 days to make cash and then spend one day trying to avoid giving it all away.