small business owners

[RaginCajun]

actually yes, and you don't have to 1099 them if you pay them less than $600 yr..

on another note..

sub s is the best structure unless you plan on selling parts of the company, then an LLC is the best vehicle..

when you fill out your tax form you simply give them your federal tax id, now the issue is if you get 100% of your income from this one employer in a year the IRS and the other state agencies can go after them because you are an employee not a contractor, but that's their issue..

Yes roll over into a private IRA,
a better vehicle is a Roth
a still better is a managed pension plan... now what cool about this is you pay with pre tax $$$$ into a managed (by a firm) and it's your pension.. so if you make say $300k and your company pays you $90k a year, state/federal taxes, fica all go off the 90k... the cost to do business trips, phones dinner everything comes off the top at the end of the year you still have $150K which is put into your pension end results your company made $0 and you owe no corp taxes..

see how it works??

thanks spywizard!!! that helped out some, my head is still spinning! 100% of my income for next year will be coming from an oil and gas firm. i will have to sign a contract with them in order to get paid. my two friends do the sub s thing i think.

managed pension plan is probably what i would go after. i will not be making 300k, prob more like 70k. so would it still be beneficial to do the sub s corp or LLC in my position? single, no kids, no nothing. and thanks again for helping with this as i have zero knowledge in this!

[spywizard]

thanks spywizard!!! that helped out some, my head is still spinning! 100% of my income for next year will be coming from an oil and gas firm. i will have to sign a contract with them in order to get paid. my two friends do the sub s thing i think.

managed pension plan is probably what i would go after. i will not be making 300k, prob more like 70k. so would it still be beneficial to do the sub s corp or LLC in my position? single, no kids, no nothing. and thanks again for helping with this as i have zero knowledge in this!

you can still do the sub s.. but no need to do the managed pension plan, just a sep and roth..