“I’m starting a new business. Which business structure is best for me?”
That is the most important decision to consider. Many new business owners make the LLC mistake and pay 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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