Small business owners
- Thread starter Nark
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drunkenbeagle
Gang Member
I've owned a few. Get a CPA, taxes are kind of complicated.
In almost all cases you are paying taxes on your personal return (S Corp, LLC, Sole Proprietor), the principle difference is the form they are reported on (K-1, Schedule C, etc). I'm a big fan of S-corps.
Nark
Macho Superpilot
From what I've read up today.. yes, CA or CPA for sure. LLC or S corp is the way to go.
I have an idea of what to do in order to maximize earnings from full time job 1, with supplemental "carry over loss" from "home office biz." And lastly part time warrior thing I do.
Another option is purchasing a brick and mortar retail store and use that as a S corp.
I have lots of ideas, but little time to execute, or will quickly burn out between the 2 current "full time" jobs.
I have an idea of what to do in order to maximize earnings from full time job 1, with supplemental "carry over loss" from "home office biz." And lastly part time warrior thing I do.
Another option is purchasing a brick and mortar retail store and use that as a S corp.
I have lots of ideas, but little time to execute, or will quickly burn out between the 2 current "full time" jobs.
wheelsup
Well-Known Member
My wife and I had a partnership before we were married that issued K-1s. It was very simple for what we did. I made web sites and she did the graphic design. It basically paid rent which was its intended purpose. As far as taxes go we did them ourselves and filed with the state ourselves. A little bit of a learning curve but nothing that can't be overcome. The more complicated situations certainly will benefit from a CPA but you need to be making decent money for them to pay for themselves in creating less hassle. The K-1s are just pass throughs to your 1040.
Once you get your federal EIN you can open up a bank account and use it strictly for your business. Makes keeping track of "business expenses" a lot easier. We had a lot of business meetings at restaurants.
No need for any sort of legal structure unless you think you need to be shielded from lawsuits. It's an expense that isn't really necessary if you don't have much in the way of assets as well (not saying you don't, just putting it out there).
Once you get your federal EIN you can open up a bank account and use it strictly for your business. Makes keeping track of "business expenses" a lot easier. We had a lot of business meetings at restaurants.
No need for any sort of legal structure unless you think you need to be shielded from lawsuits. It's an expense that isn't really necessary if you don't have much in the way of assets as well (not saying you don't, just putting it out there).
ComplexHiAv8r
Well-Known Member
I've been inc'd since '88 and successfully purchased a plane and wrote it off. Ask away! 8)
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Nark
Macho Superpilot
My goal is to offset taxes paid from primary job. I can throw all my military drill pay towards TSP (well almost all of it).
The SBA has a lot of programs for vets to get started. Maybe that's an avenue.
The idea of a turn key retail store just fizzled out, another guy executed on the same idea I had.
Mostly thoughts for now.
The SBA has a lot of programs for vets to get started. Maybe that's an avenue.
The idea of a turn key retail store just fizzled out, another guy executed on the same idea I had.
Mostly thoughts for now.
ComplexHiAv8r
Well-Known Member
My business loses money every year. After depreciations and such. 8)
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drunkenbeagle
Gang Member
You can't have a business that exists for the sole reason of avoiding taxes. That said, there are plenty of businesses that do lose a lot of money. Pretty much all of them related to aviation in any way shape or form.
gotWXdagain
Polished Member
And oddly enough, Amazon.
Curious as to your thought process on S-Corp.
drunkenbeagle
Gang Member
Pretty simple, an S-Corp has all of the benefits of a C-corp. It only gets taxed once (on your own tax return), has an incredibly simple tax filing itself. Really, there is nothing not to like about an S-Corp. Unless C-corp someday get the same tax rates. The only downside is the need to keep track of the basis of each owner every tax year. This isn't reported to the IRS, but as long as you keep good records, it isn't a big deal at all.
ComplexHiAv8r
Well-Known Member
There is a few items if you have employees and offer retirement. Up to 25% of payroll can be put to retirement but it has to be the same rate for ALL employees.
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I own a mortgage company (LLC) with another airline pilot that we started back in '09. I'd be happy to help you out to the best of my ability. Honestly pretty much everything is handled through our accountant, but we definitely try to expense as much as we can legally to offset our airline income/profits.