Don’t Make The LLC Mistake!

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. 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%5,5087,3449,18011,01618,870
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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    COVID-19 UPDATE

    • We are still working hard to keep our clients in good standing with the IRS, minimize their taxes, and save them as much as legally possible.
    • We are now OPEN BY APPOINTMENT at both our office locations (Lago Vista & Cedar Park).
    • If you’re healthy (no flu or Covid-19), and it’s convenient to come in, contact one of our offices for an appointment.
    • If you’re not sure, i.e. you may have flu or may have been exposed to the Corona virus, please use  Priority U.S. Mail or our online portal to get documents to us.

    For the duration of the pandemic, our firm will be operating at normal speed.  We can provide our customary services without face-to-face meetings because our firm moved all our software and files to cloud hosting in 2014.  You can continue to submit documents via U.S. Mail or our ATOM portal.  You can still reach us by telephone.  Please pray for us and know that we are praying for you.  God bless Texas.  God bless America.