Tax questions pertaining to your commission checks.
I intend on talking with my CPA about this, but any current brokers that can offer advice on how they reduce the amount of tax they pay on their commission checks would be much appreciated. I'm going over next years projections and goals; I don't like the tax numbers I'm getting, would love to see them much smaller!
[{"id": "drce6ej", "text": "Commission should not be paid directly to you but rather to a entity you control.  That entity can have expenses, can pay you a salary, distribute earnings to owners or shareholders, all of which have tax implications that can benefit you.\n\nMy guess is that you\u2019re really looking to avoid as much self employment tax as possible.  You\u2019re CPA will show you how to navigate all of this legally.  \n\nYou also want to ask about your entity contributing to yoir retirement fund.  ", "replies": [{"id": "drceoei", "text": "Thanks for the input. I have read a couple of articles about setting up and LLC, then choosing to be treated as an S-Corp for taxing purposes; giving me the ability to pay myself a reasonable salary with the rest coming in the form of dividends. Sounds similar to what you were inferring above. I will have my CPA advise me through it all. Thanks again!", "replies": [{"id": "drcxm7a", "text": "Yes, you\u2019re on the right path.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]