Ways to reduce my small business tax burden in USA

[carlvo]

@jesusisgood A. Helps to keep things clean from an accounting perspective.
B. Limits your liability. Someone sues your business, they can’t access the equity in the building. Someone slips out front of your building, they can’t sue the business.

 

[bisonbubbles]

@carlvo Couldn't the corporate veil still be pierced if the courts find that you were "negligent"?

 

[jesusisgood]

@carlvo Interesting. It also creates a new tax entity, right? We’ll have to bounce this off of our accountant. Thanks!

 

[carlvo]

@jesusisgood It also allows you to sell either entity independent of the other.

 

[rachelcgv]

@carlvo Shame the working class has nothing to write off.... Bootstraps, am i right???

 

[noose]

@rachelcgv No. You are not right.
You are angry.

 

[rachelcgv]

@noose I'm angry and ur still useless to society. Rather be angry than useless.

 

[noose]

@rachelcgv Please seek help.
Therapy is of great value, and covered by Medicaid.

 

[j1994]

@noose lol

 

[pchevalier]

@carlvo Is there a more in depth (like I’m five type thing) write up about this approach that anyone has? Would love to understand in more detail.

 

[carlvo]

@pchevalier https://www.reddit.com/r/smallbusiness/s/HT2o5A4zzP

 

[ftntravis]

@carlvo What if it’s your home?

 

[carlvo]

@ftntravis I don’t think that would work. But you can depreciate a portion of your home if you run your business from it.

 

[michaelduarte]

@carlvo And the portion is exclusively used for businesd

 

[jesusisgood]

@amicrazy90 S-Corp will avert self employment tax but is only advantageous above a certain income level. Once formed, income from your S-Corp runs through payroll and is subject to payroll tax.

This is not the advice you were looking for but your question revealed a misunderstanding.

 

[amicrazy90]

@jesusisgood Our income this year was around 500K after expenses. I expect about the same for next year.