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I'm firmly in the camp of "pay for legal/CPA advice" rather than asking here. But I've sort of been through this and the short answer is that the time to consi
by dotBen 15y ago
I'm firmly in the camp of "pay for legal/CPA advice" rather than asking here.
But I've sort of been through this and the short answer is that the time to consider how you would minimize tax was when you formed the company.
Assigning the stock in the startup to a holding company you control vs personal ownership, getting into S-Corp vs LLC for the holding company, etc are all areas you could explore.
It's probably too late now, however.
- benmccann 15y agoHow would a holding company help? Wouldn't the company just be subject to the tax then (at the corporate tax rate which would be even higher)?
- dotBen 15y agoI believe there are various things you can do (note IANAL, or accountant) such as take procedes taxed as a dividend (lesser tax rate) or even not take the money out of the company and reinvest or buy an asset and net out zero taxable profit. And S-Corp would also come under your personal tax rate, I believe rather than corporate tax rate.