How to protect your income ?

WHAT company form would be the best to protect any generated income from future possible claims ?


C-Corporation:
says, that it is a separate and distinct legal entity.
What means, what ever profit the C-Corporation would make, it's the profit of the company - but not mine, right ?

For instance:
Let's say the C-Corporation's annual corporate income would be $100k - I have to pay the Federal and State Income Taxes for the Corporation, right ?

And also, can I leave all profit within the company ?
Or do I have to pay the profit to my shareholders ?

My goal is clear. I want to make sure that my personal income get's down to the bare minimum.


Curious if that would work or not.

LLC:
Since an LLC has a pass through taxation, I am assuming that any profit would automatically count as my personal income. Which I want to avoid - if possible.


I have personal reasons why I want to keep my my annual income at the bare minimum.
Just looking for possible answers, what's feasible and legal practical doable.


Thx for any hints, ideas, and infos !
I really appreciate that !

 

If you are the sole-proprietor of the LLC then your business's income would be taxed as it normally is through you by filing a schedule C. All corporate entities are distinct legal entities separated from you and are taxed as such. But taxes vary depending on corporate classification, income, business type, state, and a number of other factors. I'm not sure what your situation is like, but depending on the size of your business it's possible that incorporating your business could cost you more.

I'd recommend that you sit down with an accountant, and not seek out advice that will impact the future of your business from a public forum.

Best of luck.

 

You'd be better served by sitting with an attorney and accountant to be sure that you can have all of your questions answered.

I know that does not give you an answer and I hate it when I got that advice shot at me in the past. But I took it and I'm so glad I did. Not only did it save me money and make me money, but it gave me peace of mind.

Leilani

 

Depends on what state you are in, depends on what you want to achieve with minimizing your perceived income, depends on the knowledge of your accountant ect....

Asking this on a forum is not a good idea, the best advice I can give you is go talk to 2-3 accountants see what one you like the best and stick with him.