In any case consider retirement plan options to keep taxes down. Depending

Jan 25, 2022
3:38:12pm

byu78 Walk-on

on how much the business is taking off, you may want to elect S Corp status (1) for the FICA tax reasons mentioned and to expand the list of retirement plan options.

Report problem with this ad

byu78

Bio page: byu78
Joined: Jul 9, 2011
Last login: Apr 26, 2024
Total posts: 52 (2 FO)

Report problem with this ad

Messages

Author

Time

Question for you small business owners

Beggar

1/25/22 2:52pm

Needs to be an S Corp to make a difference. Pay her a reasonable salary and the

JAGA97

1/25/22 2:56pm

This is the correct answer

Jersey hunter

1/25/22 3:03pm

Well...that depends.

Plato

1/25/22 3:19pm

Keep it as low as can be justified as reasonable and take the rest as draws so

marinercoug

1/25/22 2:57pm

If he's not a sub-S, then the draws are subject to self-employment taxes

BYUMizzou

1/25/22 2:59pm

I am assuming is is an S-Corp or has elected to be taxed as an S-Corp since he

marinercoug

1/25/22 3:57pm

It depends on how you are organized. Do you have an S-election?

BYUMizzou

1/25/22 2:58pm

I have always wonder if you can switch to this later? Currently we have a side

AggieWeekendCougar

1/25/22 3:10pm

Yes, you can. You can make an S-election at any point. It needs to be done by

BYUMizzou

1/25/22 3:20pm

I should mention one qualifier though

BYUMizzou

1/25/22 3:22pm

Do you have kids? First step is to employ the kids in the business, as they

SanFran

1/25/22 3:15pm

In addition to the tax considerations mentioned, you have a capital allocation

NOCAL_YFAN

1/25/22 3:16pm

In any case consider retirement plan options to keep taxes down. Depending

byu78

1/25/22 3:38pm

Report problem with this ad

Posting on CougarBoard

In order to post, you will need to either sign up or log in.

Report problem with this ad