Ways to reduce my small business tax burden in USA

[suzannemoore]

@amicrazy90 Make an estimate tax payment asap. At least q4 won't have a penalty associated with it.

 

[amicrazy90]

@suzannemoore Will do! Thank you

 

[bisonbubbles]

@amicrazy90 You can get on a payment plan with the IRS for back taxes, but you can only do it every 5 or 7 years. You can also delay your personal tax filing in April by a few months without penalty.

 

[apexanimal]

@amicrazy90 You can still do it now to stop the interest accruing.

 

[amicrazy90]

@apexanimal Got it. Thank you

 

[clutchy]

@amicrazy90 My business is in NYC which also has a 4% UBT tax.. my accountant stated that if you have about $60k in profit (after paying your W2 employees (you/your partner) a reasonable/customary amount ) it becomes worth it to do the Scorp. This also takes into account the higher tax prep bill of filing a business return.

just a data point... very much recommend having your accountant crunch the numbers for your particulars.

 

[bisonbubbles]

@clutchy Would the S-Corp be tax advantageous compared to a passthrough LLC w/ QBI deduction at that level of profit?

I always viewed the hassle as being worth it once somebody's personal net income (or AGI or whatever) exceeds the QBI limits, ~$180k-360k depending if single or married.

 

[prayhouse]

@amicrazy90 At that income level, you should really be talking to a professional and not Reddit, but depending on your age, a defined benefit plan could allow you to put away more than a 401K and can be especially advantageous if you have no employees.