Any S corp or SubS corps on here??? - REO Property Preservation Forum
 
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post #1 of 9 (permalink) Old 01-09-2013, 09:21 PM Thread Starter
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Any S corp or SubS corps on here???

What is a REASONABLE salary for our type business. I changed over to a SubS from an LLC at the 1st of the year and with a subS or S corp, you can take $$$ from your corp as disbursements which no SS and medicare are taken. My accountant an i are going rounds on this. He's saying i should take 60K as salary and only 10K as a disbursement. (figuring on a 70K yr taxable income.) I'm thinking more like 40K as salary and 30K for disbursement but he says that will surely set me up for an audit. Any ideas???
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post #2 of 9 (permalink) Old 01-09-2013, 09:30 PM
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What is a REASONABLE salary for our type business. I changed over to a SubS from an LLC at the 1st of the year and with a subS or S corp, you can take $$$ from your corp as disbursements which no SS and medicare are taken. My accountant an i are going rounds on this. He's saying i should take 60K as salary and only 10K as a disbursement. (figuring on a 70K yr taxable income.) I'm thinking more like 40K as salary and 30K for disbursement but he says that will surely set me up for an audit. Any ideas???
I'm not an S corp, but I have friend that has one. I know he took around 39k in salary or wages. His wife had a small amount of a wage. The rest he had distributed as a dividend quarterly to himself and his wife because they owned all the shares. He said it was great because dividends were only taxed at 15% (no SS or medicare). With the crap Obama is doing, I don't know if that is still the case.

I'd be very interested in hearing how you handle this. I've been considering an S corp as a holding company and then the rental LLC's and the construction LLC would be wholey owned by the S corp.



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post #3 of 9 (permalink) Old 01-09-2013, 09:38 PM Thread Starter
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I'm not an S corp, but I have friend that has one. I know he took around 39k in salary or wages. His wife had a small amount of a wage. The rest he had distributed as a dividend quarterly to himself and his wife because they owned all the shares. He said it was great because dividends were only taxed at 15% (no SS or medicare). With the crap Obama is doing, I don't know if that is still the case.

I'd be very interested in hearing how you handle this. I've been considering an S corp as a holding company and then the rental LLC's and the construction LLC would be wholey owned by the S corp.
Do you know what he's taking as dividends???
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post #4 of 9 (permalink) Old 01-09-2013, 10:20 PM
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I'm an Scorp and I pay myself salary of 75k and a bonus of a percentage of profit of 15 percent and you can also pay yourself I think 20percent of your taxable wage in a sep Ira. Not 100 percent my accountant handles all the book work for me but I known every January I wrote a big check to my retirement account
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post #5 of 9 (permalink) Old 01-09-2013, 10:32 PM Thread Starter
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I known every January I wrote a big check to my retirement account
You mean the retirement account that Obama plans on getting in lieu of taxes??

http://www.reagancoalition.com/artic...etirement.html
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post #6 of 9 (permalink) Old 01-09-2013, 10:45 PM
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I definitely need to do better tax planning this year. I did decent this year, but spent a lot of it growing our working capital fund, all now sitting in my AR, as we grew a lot this year. Nothing is overly past-due, our volume has just increased by four or five times.
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post #7 of 9 (permalink) Old 01-09-2013, 10:56 PM
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Originally Posted by mtmtnman View Post
What is a REASONABLE salary for our type business. I changed over to a SubS from an LLC at the 1st of the year and with a subS or S corp, you can take $$$ from your corp as disbursements which no SS and medicare are taken. My accountant an i are going rounds on this. He's saying i should take 60K as salary and only 10K as a disbursement. (figuring on a 70K yr taxable income.) I'm thinking more like 40K as salary and 30K for disbursement but he says that will surely set me up for an audit. Any ideas???

I became a sub s around this time last year! i not remember how I did it. I would listen to your CPA!
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post #8 of 9 (permalink) Old 01-09-2013, 11:14 PM
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I don't know if this is helpful - but I am assume you were taking "draws" with an LLC. With an S CORP you can pay yourself as a W2. I have both but for different purposes. In terms of a set salary - you could pay yourself a minimal salary with "bonuses"...that way you have flexability. My Property Prez Co is an S Corp. It is more beneficial in my planning though given the new tax laws - everything is up in the air. GOod luck!!!
post #9 of 9 (permalink) Old 01-10-2013, 06:34 AM
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I pay that tax out of my salary.

You can add additional money into a sep ira for retirement. Its the same thing as a 401k put a different name because its an s corp

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You mean the retirement account that Obama plans on getting in lieu of taxes??

http://www.reagancoalition.com/artic...etirement.html
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