2007-01-08 14:02:31 · 5 answers · asked by David R 1 in Business & Finance ➔ Taxes ➔ United States
LLC taxed as partnership. 1 or 2 owners but we have profits. I'm trying to figure out the advantages outside of paying a normal salary and receiving a w2 and k1 vs just a k1 (subject to se taxes of course)
2007-01-08 14:19:01 · update #1
It depends on the structure of the business:
Sole Proprietorship - No
Partnership - No
S-Corp - Yes
C-Corp - Yes
In the case of corporation, you MUST pay yourself a reasonable salary. This is a point of emphasis for the IRS.
2007-01-08 14:14:58 · answer #1 · answered by Wayne Z 7 · 0⤊ 1⤋
Yes it will help you with taxes and things. Having W2 forms turned into the IRS will provide you with financial history for credit purposes.
2007-01-08 14:09:33 · answer #2 · answered by briardan 4 · 0⤊ 0⤋
Sure thing. Not only does it provide a more stable credit history with creditors, but it also pays into your social security. Which in turns, gives you more Social security when you hit retirement age.
2007-01-08 14:13:00 · answer #3 · answered by Fool in the Rain 6 · 0⤊ 0⤋
I know you can if you set up your business as a corporation. then you can hire yourself as an employee and pay yourself a regular paycheck. There can also be other tax advantages to being a corporation as well.
2007-01-08 14:14:32 · answer #4 · answered by QandA 3 · 0⤊ 0⤋
i suggest retirement accounting one self, then it is all tax free.
2007-01-08 14:06:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋