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Pay yourself (stockholder
employee) what other companies pay employees for similar positions.
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Use background and
experience in that field as a guide for what reasonable compensation
should be.
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Take into account how much
time you actually contribute to the performance of services for the
corporation.
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Consider the salary you pay
to your non stockholding employees.
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Reflect on your contribution
to the actual profit making activities of the corporation.
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Respect general economic
conditions for that tax year.
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Evaluate the actual
compensation you paid yourself in prior tax years.
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As
always, seek guidance from a CPA, or other tax professional.
5.
Retain more or all of your social security benefits by incorporating
your sole-proprietorship, and electing Subchapter "S" status.
Since the profits are deemed unearned income, they are not considered
"earnings" by the Social Security Administration. This is a
major loophole in the law and any social security recipient can use this
strategy to retain their social security benefits, while effectively
still working. CAUTION:
Do not try this yourself without professional guidance.
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