Comment

Comment by mathrawka

Please correct me if I'm wrong, also I assume you are in the US...

    I did this for a while, but it starts to hurt around tax season. There are advantages
    to being incorporated and then hiring yourself as an employee for a minimal wage. With
    the way you're doing it, you're paying employment taxes on your entire income. With an
    LLC, you can pass the majority of it through without paying that.
So you are paying corporate tax rate on the profits of the company, then personal tax rate on your "minimal wage". How does the money from the company get passed to you without any tax hits?
parent mathrawka 7 years ago

Discussion

Live from the official Hacker News API

A modern reader for Hacker News · SvelteKit + Skeleton