Best Business Structure? Don’t Make The LLC Mistake!

best business structure - don't make the LLC mistake

“I’m starting a new business. Which business structure is best for me?”

That is the most important decision to consider when starting a new business. 

Many new business owners make the mistake of picking a LLC and they end up paying dearly for it!

Did You Know That Your Business Structure Determines How Much You Pay In Federal Income Taxes?

Here are a few of the reasons why a LLC is often a bad choice:

  • Up to $15,000.00 a year in Self Employment Tax.
  • Expensive lawyers to form it CORRECTLY… or you could try and be your own lawyer and that could be both risky and potentially devastating!
  • The IRS DOES NOT recognize the LLC as a business form.
  • Tax laws for LLC’s are not fully developed and you are more likely to run into an issue that the IRS and the Courts haven’t decided yet.
  • One of the original members of a Texas LLC cannot sell their interest (did the “online lawyer” website warn you about that?)

How Business Taxes vary on the same income

Payroll Tax on 60%5,5087,3449,18011,01618,870
Self-Employment Tax8,47811,30414,13016,95523,814
Owner Compensation36,00048,00060,00072,000144,000
Net Income Before Owner Comp.60,00080,000100,000120,000240,000

Don’t make the LLC mistake! Let Gray & Associates CPA, P.C. help you decide which business structure is right for you!

Here’s why we should talk:

  • We have carefully studied the IRS tax code to determine which business structures offer our clients the best possible tax scenarios.
  • We can set you up with a smart business structure that will hold up in Court.
  • We can set you up with a tax-friendly business structure that could save you thousands of dollars in taxes each year.

Why Risk It? Contact Us Today for a Free Consultation

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