Sure it would. But you dont 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 youll 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 companys 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, Id 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 -------------- next part -------------- An HTML attachment was scrubbed... URL: https://www.moypiano.com/ptg/pianotech.php/attachments/20071007/ab04ffca/attachment.html
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