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  • How best to structure a part-time business

    From NadCixelsyd@21:1/5 to All on Thu May 12 14:04:11 2022
    How best to structure a small business and pay the least taxes.

    I’ve retired. In my spare time, I’m about to convert a hobby into a part-time business. I estimate that the business will have revenue of about $40k and will show a profit of about $20k per year. If I declared the income, I would pay a lot in
    taxes (fed, state, FICA) I don’t need the money and would like to route the profits to the college fund(s) of my six grandchildren. Although I do most of the work, they are all chipping in some time to help sort, package, and mail the product to
    customers. The product is printed material based on a copyright that I hold.

    Thoughts?

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  • From Wilson@21:1/5 to NadCixelsyd on Fri May 13 11:17:08 2022
    On 5/12/2022 2:04 PM, NadCixelsyd wrote:
    How best to structure a small business and pay the least taxes.

    I’ve retired. In my spare time, I’m about to convert a hobby into a part-time business. I estimate that the business will have revenue of about $40k and will show a profit of about $20k per year. If I declared the income, I would pay a lot in
    taxes (fed, state, FICA) I don’t need the money and would like to route the profits to the college fund(s) of my six grandchildren. Although I do most of the work, they are all chipping in some time to help sort, package, and mail the product to
    customers. The product is printed material based on a copyright that I hold.

    Thoughts?

    Keep track of expenses. Hire your grandchildren if possible and pay them
    well and make sure they pay heavy into FICA. They'll need it. Other than
    that, if you are trying too hard to avoid taxes, maybe you should just give
    you product away and avoid profits.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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  • From John Levine@21:1/5 to All on Fri May 13 15:56:36 2022
    According to Wilson <nowhere@nearyou.com>:
    On 5/12/2022 2:04 PM, NadCixelsyd wrote:
    How best to structure a small business and pay the least taxes.

    I’ve retired. In my spare time, I’m about to convert a hobby into a part-time business.

    Keep track of expenses. Hire your grandchildren if possible and pay them
    well and make sure they pay heavy into FICA.

    Yes, although the FICA contributions are a fixed percentage of the pay,
    no option about that.

    If you meant they should make large contributions to Roth IRAs, I completely agree.

    --
    Regards,
    John Levine, johnl@taugh.com, Primary Perpetrator of "The Internet for Dummies",
    Please consider the environment before reading this e-mail. https://jl.ly

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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