Getting Paid

Discussion in 'Business Operations' started by Johnson LCO, Jan 2, 2008.

  1. Johnson LCO

    Johnson LCO LawnSite Senior Member
    Posts: 336

    I have worked for a landscaping company in the past and have decided to start my own company. I will still do some sub work and some work when my boss needs extra labor, but we both are looking for a better way for me to get paid than regular paychecks. I was thinking of just having him pay me as a sub contractor for all of the work, made payable directly to the LLC that I set up. Are there any benefits to this other than not paying worker comp? I would put the money in the Company account that I am going to use for equipment over the next couple years. I have saved enough through my years of working that I do not need money in my pocket, so if I put the money in the company account and use it to just pay for equipment, will I have to pay taxes on it? It is my understanding that a company does not pay taxes unless it grosses over 150k, and the owner just pays personal income tax based on what the company "pays" them. I want to keep the money in the account so I dont pay personal taxes on money that will go into equipment anyway. Can I do this? Am I totally misinformed on this? Any opinions?
     
  2. jimmyburg

    jimmyburg LawnSite Senior Member
    Posts: 701

    talk to a tax account manager or CPA.
     
  3. John Gamba

    John Gamba LawnSite Fanatic
    from ct
    Posts: 10,812


    Talk to a Lawyer and an accountant.then get back to us.
     
  4. Johnson LCO

    Johnson LCO LawnSite Senior Member
    Posts: 336

    Thanks I guess I should have seen that coming. I am hoping someone will know the answer without me having to talk to a CPA. If it does come to that I will post the response I get.
     
  5. SOUTHERNGREENSCAPES

    SOUTHERNGREENSCAPES LawnSite Senior Member
    Posts: 763

    any profit your company shows is what your pay is. It doesn't matter if you officially pay yourself or not. in an LLC, you and the company are the same being, so if the company makes money then you make money and pay taxes based on that amount. But remember, this is very vague info and you should again contact a cpa for more detailed explanations b/c tax laws are very complex and can change quickly.
     

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