3 ms·
Is anyone gonna mention that by doing business as an S-Corp you can avoid the majority of that self employment tax. Especially if your partner works.
by Flatcircle 5y ago
Is anyone gonna mention that by doing business as an S-Corp you can avoid the majority of that self employment tax. Especially if your partner works.
- sidlls 5y agoHow does that work? Your S Corp has to pay you (and your partners) a salary that is appropriate for the job you’re doing. So that “trick” only works if the S Corp is bringing in substantially more revenue than salaries paid.
- ramraj07 5y agoWhich depending on how your expenses are, can be fine? Keep the money in the company itself and use it for car and travel as long as it can be substantiated as company related (don’t lie, but surely you can vacay and meet a client in Hawaii as well). This assumes you have a large nest egg that can supply your part mortgage payments in this time though.