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by joshuanomed 3732 days ago
I think you need better tax advice.

An LLC only pays taxes if it has elected to be treated as a C corp by the IRS, otherwise income & losses pass through to the members.

An C or S corp only makes sense as a sole-proprietor if you have substantial other assets to protect, or expect to accept investments from non–individuals.

You need far better tax advice than you're getting, wherever you're getting it from.

If your goal is to pay absolutely no taxes, then that's not going to happen if you want to rely on the systems those taxes pay for in the US.

If your goal is to legitimately reduce taxes and spread income over multiple years, there's legal ways to do so which a proper tax advisor can guide you through.

1 comments

We're saying the exact same thing. "Income passes through the members" = members pay income taxes = federal + states + self employment tax = +%50 if your income is $1 million. You can eventually avoid the self employment tax filing as an S-corp.

"that's not going to happen if you want to rely on the systems those taxes pay for in the US.". That's what I'm saying, there's no way around it besides the republicans tax reform.

"spread income over multiple years". That's what someone mentioned already.

Am I still not informed? Should I need better tax advise?

Yes, you need better tax advice.

Waiting for Republican "tax reform" is like watching Lucy hold the football for Charlie Brown. If you are holding off managing your business cash flow until this "tax reform" is set in motion…you are going to be waiting a very, very long time.