If you make $80k and are self employed you are basically paying 15.3% for self employement taxes. If you incorporate as a S corp, you can pay yourself a "reasonable salary" $30-40k and not pay self employment taxes on the differnce $40k ($80-40). $40k x 15.3% = $6k+.

The remaining INCOME goes to your tax return on a K-1 which is not subject to self employement taxes (and sometimes not subject to the 1% lcoal tax).

There is your little tax tip for the day. Go talk to a real CPA (i am fake) to confirm.....[B] [SIZE=3]then send me

 

Good advice.

Lots of other BS to attend to in the corp. environment. All the corp filings, the payroll tax crap, etc.

My advice - get paid CASH if at all possible......

 

Another tax tip is to buy a 6,000+ lb vehicle for the business, then take the highly accelerated depreciation of a truck rather a passenger car.

Lots of SUV's as well as most full size pickups fall into the category.

 

We picked the one business that is freaking regulated. Mortgage Brokers in PA have annual reports that included # of loans closed, points charged, etc........ There is a paper trail for everything!!!!!!!

NO CASH AT ALL!!!!!

Scot

[QUOTE]Originally posted by meat
[B]Good advice.

Lots of other BS to attend to in the corp. environment.