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Originally Posted by Lenny2
Actually you can be an LLC and elect to be taxed as an S-Corp.
That's what I do.
On the SEP IRA thing, don't the contributions have to come from your salary and are only allowed to be a certain % of your salary?
I thought of doing the SEP thing, but in order to max the contributions I'd have to turn all of my income to salary and lose the break I get on payroll taxes by taking a small salary and the rest of the $$ as a dividend.
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Not sure I understand. LLC and s-corp both do not pay federal income tax. It passes through to the individual.
The SEP is capped as a percent per what i read too. But it is 15% and you can do a matching contribution. I am not a big fan of putting away money for retirement anyways so it might be a place to start.
The other stuff I have encountered. I am not being agressive enough in moving my expenses to the business. There is no reason not to have a company car, cell phone and health ins. I am chicken shit when it comes the IRS so i will check further but these are pretty easily done.