New biz - need tax advice!

[bobback 3]

My wife has been self-employed for 4 years, and I just recently became self-employed. Thus we formed a corporation to try to avoid getting raked over the coals on taxes!

 

Need advice on how to determine how much to pay ourselves w/o getting flagged by the IRS! As the conern is if we pay ourselves a drastic difference from what we made last year, could put up a red flag to the IRS.

 

Any advice appreciated, and if more info. needed let me know...thx! Bob

[h20king 794]

BOB send T Price a pm he is great guy and a finical adviser and I'm sure he would be more than happy to answer your questions..................H

[WakeDoc 471]

Consult with a good certified accountant.

[LakeSurfer 10]

I believe TPrice is a Financial Planner. So he could help you invest your new business profits, but you really do need to speak with a good certified accountant and maybe even a lawyer.

 

If you have kids, you may want to give them ownership in the company now (with you having all of the controlling votes). This way if you build a sustainable business, you can pass it along to your kids with out having to pay a bunch of estate/death taxes. I believe the current amount you can pass to family before the death tax kicks in is $5M.

 

Fun fact: When Mr. Walton (think Walmart) opened his 1st store, he gave each of his kids and wife shares. When he passed away (after building a multi billion $ business), they did not have to pay any type of estate tax.

[Bongo Fury 640]

Consult with a good certified accountant.

 

This is great advice. I don’t own a business but use a CPA for all our tax planning.

[jjcc-enzo230 1]

I will echo most everyone else - use a good CPA to assist you!!!

Sometimes good to talk to other business owners in the area as to who they use and if their CPA is any good.