Hey Veeky Forums I need help from anyone who has S Corp experience

Soft_member
Soft_member

Hey Veeky Forums I need help from anyone who has S Corp experience.

I have a biz that profited $130k last year. It's setup as an s corp. These profits are passed on to me and now even with as many deductions as possible I'm still getting drilled for about $20k in taxes.

I re-invest at an absurd rate in the business and I hate taxes. Does anyone have any suggestions as to how they mitigate their tax exposure?

SomethingNew
SomethingNew

Increase your salary

takes2long
takes2long

Bump

askme
askme

@takes2long
Are you listed as an officer and give yourself a salary? If so increase your salary to have less profit

Playboyize
Playboyize

@Soft_member
Set yourself up with a 401K plan, with very generous matching of investments.

eGremlin
eGremlin

@SomethingNew
@askme
Literally the wrong answer.

Just elect pass-through treatment and you'll eliminate any taxation at the corp level. This is elementary stuff.

Garbage Can Lid
Garbage Can Lid

@Soft_member
Wah wah wah.

20k taxes for 130k income is insane...

I just paid 900k in taxes, fuck off.

Methshot
Methshot

@eGremlin
Just elect pass-through treatment
It already is an s corp. so it passes through to me

Methnerd
Methnerd

@Garbage Can Lid

ok Lois Lerner, I will pay as much as I can afford to the IRS without complaint!

Raving_Cute
Raving_Cute

@Methshot
It already is an s corp. so it passes through to me
S corps can be taxed as C corps or as pass-throughs, depending on whether you made a timely election.

But if you made the election, what are you complaining about? Do you have any clue how taxes work, or are your just being a dumbshit?

Inmate
Inmate

@Soft_member
just create an llc and tell the irs you want it taxed as in s corp.

boom just saved thousands in payroll taxes.

also just move the headquarters offshore, something called differed taxes. Where you will be IRS taxed but instead of paying, if you can prove the taxable money went back into the business your good literally paying 0 bucks in taxes.

Also if that wont work, just increase your distributions which arent taxable and decrease salary which is potentially double taxable.

In addition hire a tax guy faggot.

Fuzzy_Logic
Fuzzy_Logic

@Inmate
just create an llc and tell the irs you want it taxed as in s corp.
LLCs get pass-through treatment automatically, you don't tell the IRS anything.
boom just saved thousands in payroll taxes
Tax status of the parent doesn;t have anything to do with payroll taxes.
also just move the headquarters offshore, something called differed taxes. Where you will be IRS taxed but instead of paying, if you can prove the taxable money went back into the business your good literally paying 0 bucks in taxes.
100% wrong
Also if that wont work, just increase your distributions which arent taxable and decrease salary which is potentially double taxable.
You do know that the IRS sets guidelines for salary levels to self-employed people in pass-through entities, right?
hire a tax guy
Next time, just say this and skip the shitty and incorrect advice.

Spamalot
Spamalot

@Fuzzy_Logic
you clearly are a larger faggot than OP.

First off op has no reason to have an S corp with such low revenues when he can have the same protection and the benefits of an S corp by electing his llc as an S corp. By forming just an llc and thats all, all income is taxable you god dam fucking stupid faggot.

By forming an LLC taxed as an S corp (which you have to tell the irs to do that within 3 months of the new year) he has the benefits of the S corp when it comes to distributions and taxes - instead of all the income (after expenses) being taxed.

And im not wrong with the offshore nigger peasant. IRS allows it and you can defer taxes forever.

Also IRS doesnt set guidelines, if anything they will audit you and see if you salary is within the industry average. They are very very relaxed. it doesn't have to be exact average. just cant be like $200 salary and 20k in distributions.

Poker_Star
Poker_Star

@Spamalot
OP already has an S corp. Reforming into an LLC just to elect S corp status is pants-on-head retarded.

And you are completely wrong about the offshore formation. IRS jurisdiction runs to the tax payer, not the locus of the tax payer. Unless OP gives up his citizenship, its not going to change anything. Stop getting your tax knowledge from Netflix.

IRS doesnt set guidelines
Huh? The IRS literally issues millions of pages of guidelines. Holy fuck, you are a special breed of dumbass.

Stop pretending to "do business" when we all can tell you're a 12 year old kid. Veeky Forums has an age requirement.

CouchChiller
CouchChiller

@Poker_Star
Itts anudda shoah!
Your tactics of trying to disprove my facts are quite jewish like. You say things, I disprove them, then take context sentences and base them as incorrect making you seem correct.

I understand its tough not having a million dollar offshore company (with several hundred thousand in deferred taxes) while millions of Americans are taxed a shit load while im escaping with paying extremely low taxes all legal.

Take it for what it is, you may think you have good knowledge, but my knowledge is more supreme and will give op the information needed effectively lower taxes substantially legally to give him the path to becoming a millionaire with the protection he needs.

At this point, there is no need to continue, you have provided no substantial evidence of lowering taxes for him, you are a waste, a parasite of this earth.

Fuzzy_Logic
Fuzzy_Logic

QUICK QUESTION LADS

If you set up an LLC

make x profit
keep all of x in the company as reinvestment

are you taxed 0?

Illusionz
Illusionz

@Fuzzy_Logic
keep all of x in the company as reinvestment
You can't just say "reinvestment" and the money disappears for tax purposes. You actually have to spend it on improvements, new equipment, capital outlays, etc.

@CouchChiller
Shut up faggot. Go back to /pol/ you little retard.

Techpill
Techpill

@Illusionz
You can't just say "reinvestment" and the money disappears for tax purposes. You actually have to spend it on improvements, new equipment, capital outlays, etc.

Swapping cash for non-current assets won't reduce your profits.
Profit = Income - Expenses
Assets =/= Expenses

If you want to pay less tax, make less profit. Otherwise suck it up and vote at an election.

Burnblaze
Burnblaze

@Techpill
Swapping cash for non-current assets won't reduce your profits.
It will if you lease them.

Firespawn
Firespawn

@Playboyize
This is pretty much your only out. You can tweak your salary to avoid the FICA taxes, but based on your tax rate I don't think you're paying that much in salary anyway.

TurtleCat
TurtleCat

@Playboyize
401K plan
@Firespawn
your only out

Not really. A SEP-IRA accomplishes the same goal and has a SUBSTANTIALLY larger contribution limit.

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