I’M AN LLC AND HAVE MADE SOME PROFIT ON TOP OF A SALARY. SHOULD I REINVEST SOME/ALL PROFIT OR DO I TAKE BONUS?

I take the tiny salary, as well as I have increase left over in my bank account. Will I have the taxation chastisement if I take increase or should i re-invest the income behind in to the company?

{ 3 comments }

Jessica M May 11, 2011 at 11:28 pm

The truth is you will pay tax on the profits whether you take them or not. If you pay it out in a bonus you will also pay fica/medicare and other payroll related taxes.

If you decide to reinvest however you won’t be subject to those types of additional taxes, just income tax.

notaclue May 12, 2011 at 12:10 am

How about sharing it with the “hard working” folks that made it for you!

Pullay May 12, 2011 at 1:08 am

Investing is by far the better option.

Comments on this entry are closed.

Previous post:

Next post:

http://www.maxprofitsinvest.com