Do you make good money and pay little in taxes???

[slapass]

Please share as I get killed every year on this stuff. I have a LLC which allows deductions etc. but I cannot say I have any good way to reduce to my taxes.

[Lamis]

Big money (A) - Big Taxes (B) = E

Small money (C) - Small Taxes (D) = E

The result is the same whatever you choose.

[After Shock Media]

You need a CPA to go over your shit and explain what would be best for you in your situation.

[jscott]

Big money (A) - Big Taxes (B) = E

Small money (C) - Small Taxes (D) = E

The result is the same whatever you choose.

u be smokin dat crack

[SilentKnight]

In Canada, RevCanada allows for one 'corporate retreat' deduction each year which we always take full advantage of.

Plus, its surprising how many 'studio props' are also considered as write-offs.

Fracturing the corporation into two separate and legal entities allows one to "rent or lease" things to the other (i.e. property, commercial space, etc.) which can make for some creative expense deductions (within legal limits).

Then there's always 'shareholder loans' that can be utilized in numerous ways.

[bDok]

I'm not in your pocket so I can't see what you already are doing. Sounds to be like there could be more done. I had set aside a lot more then what my accountant came back with in the end. I was very happy.

[pocketkangaroo]

You might want to look into switching to an S-Corp so that your company would pay half the payroll tax as an expense. Could save you like $4500 a year.

[slapass]

You might want to look into switching to an S-Corp so that your company would pay half the payroll tax as an expense. Could save you like $4500 a year.

There we go that is cool. Not sure if my accountant is super conservative or what but he said we could not do company cars. There was no justification for it.

[morningstar]

Big money (A) - Big Taxes (B) = E

Small money (C) - Small Taxes (D) = E

The result is the same whatever you choose.

I believe on this equation

[slapass]

You need a CPA to go over your shit and explain what would be best for you in your situation.

Thanks guy. Of course I have a CPA, tax lawyer and a state tax lawyer. Pretty decent guys but lets face it, do they now everything and do everything. Nope. No one does.

[Peaches]

I pay myself a relatively small amount in salary and the rest is unearned income. That doesn't help my state/federal taxes, but does allow me to pay a small amount of SS taxes, take the money I WOULD be paying in SS taxes and invest it myself. I figure there's not going to be any SS when I retire anyway so I'm paying as little as I can into it.

[MikeSmoke]

Corporate cars: depends on how conservative your accountant is - some say it's a red flag. There are many ways to do it, though.

Too much taxes: you're more limited with an LLC (no pun intended) because it's a "pass-through" entity that also can't set up some of the benefit programs that a C-corp can.

If you just want to take the money and spend it on stuff, you may be out of luck. If you want to take the money and invest it in retirement programs, etc. - you may need to change your structure, and if your CPA isn't sure how or doesn't want to do it, you may need to change accountants. A lot of what I make goes right into retirement accounts such as SEP-IRAs or 401Ks, more goes into insurance-based investment products --- there are a lot of things you can do if (and I'm not implying that *you* do, just that many people here do) you don't want to just take the excess money and spend it on cars, drugs and hookers ;)

Usual disclaimer: not an accountant or lawyer, consult professionals, etc.

[slapass]

Corporate cars: depends on how conservative your accountant is - some say it's a red flag. There are many ways to do it, though.

Too much taxes: you're more limited with an LLC (no pun intended) because it's a "pass-through" entity that also can't set up some of the benefit programs that a C-corp can.

If you just want to take the money and spend it on stuff, you may be out of luck. If you want to take the money and invest it in retirement programs, etc. - you may need to change your structure, and if your CPA isn't sure how or doesn't want to do it, you may need to change accountants. A lot of what I make goes right into retirement accounts such as SEP-IRAs or 401Ks, more goes into insurance-based investment products --- there are a lot of things you can do if (and I'm not implying that *you* do, just that many people here do) you don't want to just take the excess money and spend it on cars, drugs and hookers ;)

Usual disclaimer: not an accountant or lawyer, consult professionals, etc.

my sig implies a different life... but I still have some extra. Not sure what the tax rate is on C-corp but maybe I could take a lot less salary and use the c-corp to invest.

Peaches that is pretty neat. I do some of that even with a LLC. You have salary and you have income. And yeah it is cool.

[tony286]

a conservative accountant is a good thing. I had friend who went thru a audit it wasnt a good thing.

[halfpint]

Two words....Money....Laundering

[MikeSmoke]

my sig implies a different life... but I still have some extra. Not sure what the tax rate is on C-corp but maybe I could take a lot less salary and use the c-corp to invest.

It's 15% on the first 50K (obviously, your salary doesn't count in the 50K - that's a corporate expense) - and if you find places to "spend" the rest, getting under 50K isn't impossible.

Disclaimer: not an accountant, etc.

[MikeSmoke]

a conservative accountant is a good thing. I had friend who went thru a audit it wasnt a good thing.

I didn't mean to imply it's a bad thing

[GrouchyAdmin]

No, and no, respectively.

[CaptainHowdy]

Two words....Money....Laundering

Two others: Costa Rica...

[Sly]

There we go that is cool. Not sure if my accountant is super conservative or what but he said we could not do company cars. There was no justification for it.

Sounds conservative. Don't you have some real estate? Sounds like a reason for a company car to me.

I would look into a S Corp and maybe talk to some other accountants and feel them out. Small businesses have it hard enough as it is... you need someone that is willing to find every hole that they can for you.

[slapass]

Sounds conservative. Don't you have some real estate? Sounds like a reason for a company car to me.

I would look into a S Corp and maybe talk to some other accountants and feel them out. Small businesses have it hard enough as it is... you need someone that is willing to find every hole that they can for you.

Yeah got real estate. I need to really hit htis hard and reposition my stuff. I am getting so hammered by this it is ugly.