Joe is a real estate agent and wants to know what entity he should set up for his business. Because his income will be earned income, Joe should set up an entity that will help minimize self-employment taxes. The most likely choice for this is an S corporation. With proper planning and a good tax strategy, you can seriously reduce your self-employment tax by using an S corporation. Typically, depending on the state, I recommend an LLC (limited liability company) that has elected to be taxed as an S corporation.
For more on how to use S corporations, visit our website at http://www.provisionwealth.com/products and pick up our course on maximizing the tax benefits of an S corporation.
Warmest regards,
Tom
Comments (1)
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Posted by Marcelo Flens | May 20, 2011 1:23 PM
Posted on May 20, 2011 13:23