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Discussion in 'Business Operations' started by MJK, Nov 19, 2006.
How much do you usually end up with after taxes?
I would figure 30% for taxes.
I agree with JFGLN, On any job I do I always figure 30% for uncle sam!!
If I were paying myself a bonus of 15,000 I'd get to take home around $9,000
it depends on how your business is set up.
if that is your sole income you will only pay social serurity and madicare.
you are probably looking at more like 20% RANGE.
If you are an s corp, or llc, you should be able to shuffle that money around and not have to pay squat in taxes.
What do you mean by shuffle the money around? I am an LLC.
LLC. if it is paid out to you as an employee you will pay Social Security tax, medicare, Fed tax and State tax if you have one. The Business will pay the other half of Social Security tax and medicare. You should see right at 65-73% of the total money. However the business will also pay roughly 8-12%.
So if you Sole proprietor set up as a LLC you should actually see between 50-65%.
Is this like giving yourself a bonus after all deductions are done?
Or did you gross 15000 and haven't taken all deductions?
the only way legally you can shuffle it around is to buy more stuff through the business and depreciate it out. There is no way to shuffle profits around and not pay taxes. You are either paying taxes on your business profits, or your personal. One thing I do (as most on here) is pay myself through things like my truck, gas, insurance, etc.. this saves me money personally and means I can pay myself less.
Well lets see , just where the $15k can go in your business.. First truck insurance. linc fees. equipment maintance. gas for eq & truck, fix flat tires.Truck pmt , eq pmt storage pmt. The list goes on and on.
Cell phone bill, advertising bill sign bill printing bill postage bill, and work uniforms work boots..............leins on houses when customers do not pay. paying late fees on eq , when customers are late.
GEEEEEEEEEEEEEE THE 15KKKKKKK IS ALL GONE BACK INTO THE BUSINESS.......
This is where advance planning and a good accountant and being on top of your books is invaluable. You can, with the right information and some projections, make purchases to minimize your year end "net profit" and reduce your tax base.
By owning a business there are wonderful ways to minimize your gains that show on the books....get a good accountant, they are worth the effort.
Another vehicle that is used to minimize taxable income is the ownership of real estate. Again, your accountant should be able to help you with a game plan to maximize dollars saved. After all, its not how much you make, its how much you keep that counts.