“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% | 5,508 | 7,344 | 9,180 | 11,016 | 18,870 |
| Self-Employment Tax | 8,478 | 11,304 | 14,130 | 16,955 | 23,814 |
| Owner Compensation | 36,000 | 48,000 | 60,000 | 72,000 | 144,000 |
| Net Income Before Owner Comp. | 60,000 | 80,000 | 100,000 | 120,000 | 240,000 |
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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