Self-employed techs

[Dean May]

Sure it would. But you don’t want to get me started talking about that
legalized Ponzi scheme <http://en.wikipedia.org/wiki/Ponzi_scheme> . ;-)
IMHO, a true patriot should plan for a retirement independent of social
security. We are irresponsibly shackling future generations with a debt that
cannot be paid if we demand ever increasing social security benefits for
ourselves. 

 

If you really are concerned about a negative impact on your retirement
income through social security then all you have to do is invest that $7500
savings in a self directed IRA. I guarantee you’ll have more money at
retirement and be a more responsible citizen to boot. 

 

Dean

Dean May             cell 812.239.3359 

PianoRebuilders.com   812.235.5272 

Terre Haute IN  47802

  _____  

From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf
Of David and Jean Weiss
Sent: Sunday, October 07, 2007 10:45 AM
To: Pianotech List
Subject: Re: Self-employed techs

 

Dean,

 

Very interesting.  

 

But would that have an impact your social security payout at retirement?

 

David Weiss

 

From: Dean <mailto:deanmay at pianorebuilders.com>  May 

To: 'Pianotech List' <mailto:pianotech at ptg.org>  

Sent: Sunday, October 07, 2007 8:50 AM

Subject: RE: Self-employed techs

 

One of the biggest benefits of S corp is reduction of self employment tax.
Under S corp you hire yourself to do the work. You pay yourself a nominal
salary that is subject to normal withholdings- including FICA and the
employers share, which amounts to the same as the 15% self employment. The
bonus is that you as the owner/majority share holder get to pay yourself
dividends off the company’s profits. These dividends are treated like
interest income and are only subject to ordinary income tax; they not
subject to FICA taxes. 

 

For example, if your business nets $75k per year and you are sole
proprietor, you pay 15% off the top for self-employment which is over $11k.
Under S corp you could hire yourself for a technician salary of say $25k per
year (you make up a “reasonable” number here) and pay the remaining $50k out
as dividends. You only pay the FICA taxes on the $25k. This would save you
$7500 per year in self employment taxes.

 

There may be other benefits and/or liabilities. Check with your tax
consultant. 

 

Dean

Dean May             cell 812.239.3359 

PianoRebuilders.com   812.235.5272 

Terre Haute IN  47802


  _____  


From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf
Of Greg Newell
Sent: Saturday, October 06, 2007 10:20 PM
To: Pianotech List
Subject: RE: Self-employed techs

 


David,  
        A year or two ago I switched from Sole Proprietor , which I was for
almost 20 years, to a LLC. It was explained to me that I needed some
protection against law suits etc. Recently I reunited with my cousin who
just happens to be an excellent book keeper. She insists that she will be
able to put a great deal of money back in my pocket by switching me to a sub
S Corp. I don't pretend to know anything about it and strangely enough, I'm
quite ok with that. I'll let her figure out all that stuff and I'll try to
keep doing what I do and just maybe it'll work out in the end. Or maybe I'll
be busy enough not to notice anyway.

all the best,
Greg Newell 



At 10:25 AM 10/6/2007, you wrote:

Has anyone explored the differences between forming an LLC and an S
Corporation and the benefits of going that route as opposed to a simple sole
proprietorship?  
 
If anyone can direct me to good literature or share their own experiences on
the subject, I’d appreciate it.
 

David Love
davidlovepianos at comcast.net
www.davidlovepianos.com <http://www.davidlovepianos.com/>  
 

Greg Newell
Greg's Piano Forté
www.gregspianoforte.com <http://www.gregspianoforte.com/> 
216-226-3791 (office)
216-470-8634 (mobile)

2003,04,05 & 06 winners of 
Angie's List Super Service Award

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