I started an LLC in February. Will be making around $160k from a side hustle contracting work. Can’t figure out the benefit of filing a change to tax llc as an s corp. With S Corp, i know I can pay myself a salary and reduce the self employment tax that is around 15% (ss and medicare). However, spouse and I are also going to make ~$650k in w2 incomes. Given that there is a cap on ss, we will already be paying the ss tax from our w2s. The only thing I can save is medicare tax that would be 2.9%. Assuming I pay myself 50k salary. That saves me $3k (on 3% of 100k income). I will have to run payroll from a service like Gusto that is around $500 annually. There are some other smaller costs for scorp taxation. My question is: Am I estimating the tax saving correctly (especially since ss will be payed from w2) or am I missing some additional tax savings that I can have by opting for scorp taxation for LLC? #cpa #irs #tax
Tech Industry
Yesterday
1302
CEOs colluded to send more jobs back to India
World Conflicts
5h
454
UN: 50% less women and children killed in Gaza than previously reported
Tech Industry
Yesterday
3024
High pay, meaningless work
Tech Industry
3h
1337
DEI Has Ruined Tech
India
2h
835
What’s going on with Indian Aunties ( 28-30 yr old)?
Ideally u run more expenses via the s corp. You can also max out your profit sharing in another 401k... Also max your employer contributions to 401k max... you can also setup a cash balance pension plan. Get a real accountant
You need a real accountant. You should be meeting with them every 3 months... Maintaining these things cost money but worth it. No one on this app understands... You will need an actuary for the cash balance plan... Try to find an actuary first and get referrals to cpa. It's too much math/legal for most accountants.
Talked to my accountant about this exact. DM for referral
DMed you bud. Please check inbox when you can.
Tax it as llc
Meaning default taxation?
Don’t you have to pay 5% on top of all S-Corp income? Or something like that? And you need to pay separate payroll taxes for income you receive through the s-Corp and maybe some withholding? - not a cpa
accountant is cheap
I do have an accountant but he is too busy doing tax filing right now and generally doesn’t give clear responses to such questions. He generally has ppl who are filing taxes so hard to get much out of them too. Maybe I need a new accountant.
Yeah you need a different accountant. Not just a tax filing CPA but someone who specializes in self employment.