<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:st1="urn:schemas-microsoft-com:office:smarttags" xmlns="http://www.w3.org/TR/REC-html40"> <head> <meta http-equiv=Content-Type content="text/html; charset=iso-8859-1"> <meta name=Generator content="Microsoft Word 11 (filtered medium)"> <o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="PostalCode"/> <o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="State"/> <o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"/> <o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="City"/> <o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="PersonName"/>  <style>  </style>  </head> <body bgcolor=white lang=EN-US link=blue vlink=blue> <div class=Section1> Sure it would. But you don’t want to get me started talking about that legalized <a href="http://en.wikipedia.org/wiki/Ponzi_scheme">Ponzi scheme</a>. ;-) 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. <o:p></o:p> <o:p> </o:p> 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. <o:p></o:p> <o:p> </o:p> <div> Dean<o:p></o:p> <u1:PersonName u2:st="on">Dean May</u1:PersonName>             cell 812.239.3359 <o:p></o:p> PianoRebuilders.com   812.235.5272 <o:p></o:p> <u1:place u2:st="on"><u1:City u2:st="on"><st1:place w:st="on"><st1:City w:st="on">Terre Haute</st1:City></u1:City> <u1:State u2:st="on"><st1:State w:st="on">IN</u1:State></st1:State>  <u1:PostalCode u2:st="on"><st1:PostalCode w:st="on">47802</u1:PostalCode></st1:PostalCode></st1:place></u1:place><o:p></o:p> </div> <div> <div class=MsoNormal align=center style='text-align:center'> <hr size=2 width="100%" align=center tabindex=-1> </div> From: pianotech-bounces@ptg.org [mailto:pianotech-bounces@ptg.org] On Behalf Of David and Jean Weiss Sent: Sunday, October 07, 2007 10:45 AM To: <st1:PersonName w:st="on">Pianotech List</st1:PersonName> Subject: Re: Self-employed techs<o:p></o:p> </div> <o:p> </o:p> <div> Dean,<o:p></o:p> </div> <div>  <o:p></o:p> </div> <div> Very interesting.  <o:p></o:p> </div> <div>  <o:p></o:p> </div> <div> But would that have an impact your social security payout at retirement?<o:p></o:p> </div> <div>  <o:p></o:p> </div> <div> David Weiss<o:p></o:p> </div> <div>  <o:p></o:p> </div> <div> From: <a href="mailto:deanmay@pianorebuilders.com" title="deanmay@pianorebuilders.com">Dean May</a> <o:p></o:p> </div> <blockquote style='border:none;border-left:solid black 1.5pt;padding:0in 0in 0in 4.0pt; margin-left:3.75pt;margin-top:5.0pt;margin-right:0in;margin-bottom:5.0pt'> <div> To: <a href="mailto:pianotech@ptg.org" title="pianotech@ptg.org">'Pianotech List'</a> <o:p></o:p> </div> <div> Sent: Sunday, October 07, 2007 8:50 AM<o:p></o:p> </div> <div> Subject: RE: Self-employed techs<o:p></o:p> </div> <div> <o:p> </o:p> </div> 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. <o:p></o:p> <o:p> </o:p> 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.<o:p></o:p> <o:p> </o:p> There may be other benefits and/or liabilities. Check with your tax consultant. <o:p></o:p> <o:p> </o:p> <div> Dean<o:p></o:p> <U1:PERSONNAME u2:st="on">Dean May</U1:PERSONNAME>             cell 812.239.3359 <o:p></o:p> PianoRebuilders.com   812.235.5272 <o:p></o:p> <U1:PLACE u2:st="on"><U1:CITY u2:st="on"><st1:place w:st="on"><st1:City w:st="on">Terre Haute</st1:City></U1:CITY> <U1:STATE u2:st="on"><st1:State w:st="on">IN</U1:STATE></st1:State>  <U1:POSTALCODE u2:st="on"><st1:PostalCode w:st="on">47802</U1:POSTALCODE></st1:PostalCode></st1:place></U1:PLACE><o:p></o:p> </div> <div> <div class=MsoNormal align=center style='text-align:center'> <hr size=2 width="100%" align=center tabIndex=-1> </div> From: pianotech-bounces@ptg.org [mailto:pianotech-bounces@ptg.org] On Behalf Of Greg Newell Sent: Saturday, October 06, 2007 10:20 PM To: <st1:PersonName w:st="on">Pianotech List</st1:PersonName> Subject: RE: Self-employed techs<o:p></o:p> </div> <o:p> </o:p> David,<X-TAB>   </X-TAB><X-TAB>        </X-TAB>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:<o:p></o:p> 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@comcast.net <a href="http://www.davidlovepianos.com/" eudora=autourl>www.davidlovepianos.com</a>  <o:p></o:p> </X-SIGSEP><X-SIGSEP>Greg Newell Greg's Piano Fort� <a href="http://www.gregspianoforte.com/" eudora=autourl>www.gregspianoforte.com </a>216-226-3791 (office) 216-470-8634 (mobile) 2003,04,05 & 06 winners of Angie's List Super Service Award<o:p></o:p> </blockquote> </div> </body> </html>