|
SE tax is why so many people know what an S corp is.
Your deductible expenses are the same regardless of entity choice.
Incorporating in Md. costs about $120 and each year you'll give the gov't $300 to keep your corp. status intact. Save $450 in SE tax and your cost to incorporate just got paid for. For those keeping score that is $3000 in net income.
Income from an LLC which you actively participated in is most likely subject to SE tax as well. This doesn't always happen but that don't necessarily make it right. Guaranteed payments and other strategies MAY be employed but I wouldn't attempt to do it without a competent CPA advising me on it.
Erik
btw, none of you 'too cheap to hire a CPA' bastards is paying me a dime for this little bit of wisdom and you should consult your own CPA as my advice may not apply in your state/situation.
__________________
*****************************************
Well i had #6 adjusted perfectly but then just before i tightened it a butterfly in Zimbabwe farted and now i have to start all over again!
I believe we all make mistakes but I will not validate your poor choices and/or perversions and subsidize the results your actions.
|