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Solos - have to pay Self Employment tax?
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Date: April 14th, 2014 9:34 PM Author: citrine chest-beating volcanic crater Solo bro here with an llc, no employees, do i have to pay self employment tax? (http://www.autoadmit.com/thread.php?thread_id=2543627&forum_id=2#25384311) |
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Date: April 14th, 2014 9:36 PM Author: ebony irradiated liquid oxygen jfc. lol at "lawyers." (http://www.autoadmit.com/thread.php?thread_id=2543627&forum_id=2#25384319) |
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Date: April 14th, 2014 9:37 PM Author: Excitant Voyeur Gunner ? (http://www.autoadmit.com/thread.php?thread_id=2543627&forum_id=2#25384324) |
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Date: April 14th, 2014 9:42 PM Author: citrine chest-beating volcanic crater wtf bro, i'm not an accountant (http://www.autoadmit.com/thread.php?thread_id=2543627&forum_id=2#25384344) |
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Date: April 14th, 2014 9:50 PM Author: Sable Judgmental Haunted Graveyard yes (http://www.autoadmit.com/thread.php?thread_id=2543627&forum_id=2#25384394) |
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Date: April 14th, 2014 9:50 PM Author: citrine chest-beating volcanic crater fuck that's like an extra 11% (http://www.autoadmit.com/thread.php?thread_id=2543627&forum_id=2#25384398) |
Date: April 14th, 2014 9:51 PM Author: Pearl big-titted library -Elect S-corporation status -pay yourself a "reasonable" salary and pay employment taxes on that (roughly equal to self employment tax + around $300/yr in state and federal unemployment taxes) -Set the "reasonable" salary to around 40-50% of your net profit -take the other 50-60% as distributions, which are not subject to any kind of employment taxes (only personal income tax) |
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Date: April 14th, 2014 9:57 PM Author: Pearl big-titted library bonus protip: use the corp to buy all of your personal shit that could even CONCEIVABLY be used for business purposes. Straight up expense it if it's less than a few hundred dollars or take the section 179 deduction if it's a bigger purchase. this reduces the amount of distributions that you pay personal income tax on and also makes your corporate income less, so you can justify a smaller "reasonable" salary and pay less in employment taxes (http://www.autoadmit.com/thread.php?thread_id=2543627&forum_id=2#25384439) |
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Date: April 14th, 2014 10:07 PM Author: ebony irradiated liquid oxygen cr.
bonus bonus protip: give the corp a promissory note for $1mm, and then have the corp buy all of its shares from you in exchange for $500k of the note (paid $50k a year for 10 years as a tax-free repayment of loan), book the nol, and roll all profits into bitcoin. |
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Date: April 14th, 2014 9:51 PM Author: Comical hall windowlicker no you dont. just hire yourself to the corp. youre not self employed.
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Date: April 14th, 2014 9:51 PM Author: Turquoise self-centered mood Are you self employed? (http://www.autoadmit.com/thread.php?thread_id=2543627&forum_id=2#25384409) |
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Date: April 14th, 2014 9:52 PM Author: Well-lubricated anal piazza cuckoldry You want to have your LLC elect to be taxed as an S Corp. Then you want to pay yourself a salary, and take your profits above and beyond the salary as a draw. You will pay both sides of the payroll tax on the salary, but none on the draw. (http://www.autoadmit.com/thread.php?thread_id=2543627&forum_id=2#25384413) |
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Date: April 14th, 2014 9:56 PM Author: frum property cuck so let's see an example i'm stuck as an s corp, but i'm interested in seeing how this plays out |
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Date: April 14th, 2014 10:32 PM Author: Well-lubricated anal piazza cuckoldry Let's say your LLC makes $100,000 profit for the year. You pay yourself $50,000 in salary and $50,000 in draw. You will pay both sides of the payroll tax on the $50,000 salary, but none on the draw. You pay federal, state and local income tax on all of it. (http://www.autoadmit.com/thread.php?thread_id=2543627&forum_id=2#25384746) |
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Date: April 14th, 2014 10:34 PM Author: Electric aggressive newt what are the irs audit flags for this? is 50k going to be considered a "reasonable salary" for a solo who bills by the hour and makes gross 100k? (http://www.autoadmit.com/thread.php?thread_id=2543627&forum_id=2#25384757) |
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Date: April 14th, 2014 10:35 PM Author: Motley disturbing range yes (http://www.autoadmit.com/thread.php?thread_id=2543627&forum_id=2#25384765) |
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Date: April 14th, 2014 10:42 PM Author: crusty clear dragon How does this affect retirement planning?
Doesn't a lower salary reduce your social security payout?
I've never had any reason to run the numbers to see what happens. |