I want to save it but don't want to have to be taxed on it at the end of the year. Can it be saved "through the company?" I'm just trying to lower my tax liability.
2007-09-22 09:13:27 · 6 answers · asked by Chad H 2 in Business & Finance ➔ Taxes ➔ United States
Sorry, but there's no legal way to do that. For tax purposes an LLC is a disregarded entity; the earnings and expenses go straight to Schedule C on your individual tax return.
2007-09-22 12:27:04 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
How can you legally hide the money? In one word: don't. You don't want to mess with the IRS.
You could talk to an accountant to see about how you can reduce your tax liability, LEGALLY, on those earnings.
However, regardless of what your accoutant will tell you, don't do anything shady. Regardless of who told you what, if you get audited, the IRS will come after YOU, they don't have the authority to go after anyone else, even if they prepared your return. You are responsible as the taypayer and the signer.
2007-09-22 16:45:20 · answer #2 · answered by contessaharridan 3 · 0⤊ 0⤋
Can you grow your business by investing in property, plant, and equipment types of purchases? You could invest in your business and take tax deductions related to those purchases.
You could establish and put money into your retirement account. You could purchase your own, your spouse, and your dependent's health insurance and deduct all of it. You could establish a Health Savings Account and deduct the contribution.
If you want to just keep the extra money and not invest for business purposes, retirement, or other deductible expenses then you will have to pay taxes on it as you earn it.
2007-09-23 07:14:22 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
You have two options...sort of. You can either earn so little that it doesn't matter, or you can put it in something like an IRA. Those accounts are not taxed until money is removed. Then only the money that is removed is taxed. You still get taxed. It's just a matter of when.
2007-09-22 16:24:47 · answer #4 · answered by Jack 7 · 1⤊ 1⤋
Talk to your accountant.
The FIRST thing he or she will tell you is not to ask that sort of question in an open public forum where you are NOT anonymous & where your IP address has been linked to your question in perpetuity!
Don't be too surprised when you get audited! LOL...
2007-09-22 16:23:49 · answer #5 · answered by Anonymous · 1⤊ 3⤋
You can't - just pay what you owe.
2007-09-22 16:17:32 · answer #6 · answered by Judy 7 · 1⤊ 1⤋