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Anyone set up an LLC?

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slayer202 said:
one thing I have been wondering about is, what is considered a fair base salary/wage to pay yourself? not sure is there is any sort of guideline
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market rate

eg 200k income a year drawing salary of 20k is not fair

200k income 100k salary is more reasonable. The number you eventually pick depends on your personal comfort level.
 
Ns1 said:
market rate

eg 200k income a year drawing salary of 20k is not fair

200k income 100k salary is more reasonable. The number you eventually pick depends on your personal comfort level.
Click to expand...

well lets say the owner is doing the same amount of work from the beginning, to the point where the company is making millions. no other choice than to scale the salary up i guess? I gotta read up more about it, i'm sure there are some resources out there
 
slayer202 said:
well lets say the owner is doing the same amount of work from the beginning, to the point where the company is making millions. no other choice than to scale the salary up i guess? I gotta read up more about it, i'm sure there are some resources out there
Click to expand...

when I worked at an accounting office, the key word was "reasonable"

someone making millions EVERY YEAR drawing a 50k salary would be unreasonable.

HOWEVER, if historically you've only made 25k every year and then one year you have absolutely stellar results, the salary becomes more a grey area
 
slayer202 said:
I like that :thumbsup:

LLC has been the popular choice recently, but it seems like S-corp, at least for tax purposes, is the better option, and that link seems to reinforce that
Click to expand...

you can create an LLC and file to be taxed as an S-corp
 
Ns1 said:
market rate

eg 200k income a year drawing salary of 20k is not fair

200k income 100k salary is more reasonable. The number you eventually pick depends on your personal comfort level.
Click to expand...

kind of, my CPA said 30%-40% is actually fine.... 30k in salary, 70k in div's.
 
seems fair enough. since you are getting a nice break on the leftover, I guess you can't complain too much about listing a "reasonable" base
 
question, if you are filing for a llc or llp why not just file in deleware? seems a lot of people like to do that?
 
Thanks all, esp CPA, boomerang, and joesmoke for the info.

If i happen to become a millionaire from this endeavor I will reward each of u approximately 0.00% of the profits
 
SandEagle said:
thinking of starting up my own tech company. what are the generic steps to get started? i want to avoid paying a lawyer for this. do i need an EIN before or after filing? what were your overall experience setting it up? hassle? easy?
Click to expand...

I've done 3 in the past 3 years. Send me a PM with your phone # and I'll get you going.
 
I thought an LLC doesn't really mean anything in terms of taxes. You're either taxed as an individual or as a type of corporation. 😕

edit: Nevermind, CPA addressed this earlier in the thread.
 
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