Whats the point of getting your LLc if you are lease on with a company?? Jus asking

You take it in dividend they are taxed between 15 and 28% where's the saving all you have done is lower you SS benefits

 

your still 35%tax on that 20,000 and your going to pay 15 to 28% tax on any dividends you take

 

Yes, one is still paying income tax, but not self employment tax on that $20K. If one wants to pay the additional tax, be my guest! Never said nor implied "free" money. Just saving money. But that rate will not be 35% unless you are NETTING over several hundred thousand dollars a year. You really need to speak to a CPA and get facts. It is not a dividend but a distribution. This is S Corp not C Corp.

 

As if there will be any SS when you get there! You would be better off keeping what you wouldn't pay in SS and investing it or buying precious metals with it.

 

Your paying the same tho just paying it on the dividends instead of SS . If you don't believe SS is going to be there what makes you think your investment will be there. Metals yea that's a good investment tell me how that works for you.

 

Yes distribution of dividends . What about the extra tax the state charges for the S Corp if you talked to a cpa he would have told you . S Corp or c Corp is not for every one.

 

There is nothing mystical here. There are no dividends, as there is no stock or some other idea. The profit the S Corp has AFTER expenses, which includes your salary, is then taxed as regular income at the individual rate, not corporate rate, and is not subject to self employment tax. Now I understand how Dave Ramsey sells so many books and has a talk show. Folks have trouble grasping this stuff, or just don't want to. Dividends, corporate tax rate, double taxation, etc applies to C Corp, not S Corp. just do a simple web search in it.

And the extra my state charges for doing an S Corp? It is worth $75 initial filing fee (deductible) for years of tax savings.

 

Yes, absolutely!

 

You will have shares of stock, whether you have a C-corp or S-corp. When you incorporate you will declare how many shares will be available. The C or S classification is only for tax purposes and done through the IRS. You go through the same process with both when you incorporate. All corporations start out as a C-corp. There is a form you fill out with the IRS which can change your tax classification from a C-corp to S-corp.

 

Getting a full education in this thread!