this.
and the salary better be "reasonable", otherwise good luck with the rapage in audit
Where to register my LLC
- Thread starter bddirect
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and the salary better be "reasonable", otherwise good luck with the rapage in audit
i believe merely having a mailing address and/or bank account is enough to meet the physical location requirement. likely dependent on the state regs...
Just spoke with an accountant today. He said since I have a legit fulltime job outside of what I do online, the minimums I'd need to pay myself in salary would be much lower than if I did my online stuffs full time.
Any thoughts on that? I mean it makes sense to me, but I never thought about it that way.
Pretty sure that's irrelevant because they go by SIC comparisons in your area but if your accountant told you not to worry about it then maybe he figures it's not enough to trigger an audit. Fuck it though - I'd listen to a licensed CPA before I'd listen to me, that's for sure.
i fail to follow the logic in that. the work you do for your s corp is independent of your other job and the s corp will need to pay you a salary commensurate with the skills, education, experience, and hours of comparable positions. i'd seek a second opinion or do your own homework on the issue personally. or at the very least have him justify his claims with irs pubs and regulations.
State income tax is paid to your state of legal residence if the state has an income tax.
If you just wanting to avoid taxes just spend $600 and have your name legally changed to "General Electric" down at the courthouse.
Then you can earn up to 7 Billion a year and not have to pay ANY federal taxes.
Then you can earn up to 7 Billion a year and not have to pay ANY federal taxes.
Was being facetious.
Disclaimer for those readers with an IQ lower than 90 points: I do not actually advocate changing your individual name to that of a corporation that receives special tax carve-outs.
My company (LLC) was formed in Nevis; I have a Bank account in the the USA (BOFA); and another in Belize.
dude, are you willing to risk everything on what people here are saying.
get with an accountant. you may either get a free consultation or pay a few hundred bucks.
as you can see from the replies most out speaking out their ass
Nice, just about to get a Nevis LLC in about a week. Is it difficult to get an American bank acct under your Nevis LLC? Merchant acct?
Thanks in advance man.
@ Evolutionvision; not at all. I have an ACH Account that allows me to draft from peoples checking or savings. I never tried applying for a merchant for visa/master, but I'm sure it couldnt be that hard. My Bank of America account only wanted the Articles for the company with proper seals; but it was no problem. To many people try suing my ass so the Nevis Limited Liability Act of 1995 gets you out of alotta bullshit. I'd say its a good way to go imo
Why would you want one? Ever considered banking outside of america? You can get a merchant account with every bank in the world.
Well, with the hours I work for my full time job (10+/day), the IRS can't expect me to be working more than 2 or so per day. So I'm basically working ~40 hours a month @ $25/hour if I paid myself a $1000/month.
That doesn't sound so bad right?
in the end it doesn't matter what you or your accountant think is a good salary. under audit, the irs would bring on an "expert" to evaluate the position you hold in your company using a whole lot of other variables than just hours worked. if said expert says you're paying yourself fine, you're good to go. if he says you should have paid yourself $2k or $3k a month or more, then lube up for self employment taxes on the difference plus penalties.