vmipacman
Cast Iron
- Joined
- Nov 21, 2014
- Location
- Virginia, USA
I know there is no one answer, but have y'all that have both worked for a company and worked for yourself (or small biz) found that X amount of money from one roughly equals out to Y amount from the other to Keep the SAME Lifestyle (relatively). This is really in regards to how much you pay yourself, for me it would be like Family Operating Income.
My first thought is that you must make more as a small business owner, (say 30%) because your health care is higher and maybe self employment tax.
My second thought was that you can do the same with less, since a lot your expenses could be shared with the business (maybe like cell phones and stuff, or your wife or kids can be "employees") thus bringing down your Taxable Income and keeping a bigger portion of your Gross.
Yes, I know my tax guy would be the best to talk to but this is just part of my research process. I thought someone would be willing to share.
By lifestyle, I just mean typical family stuff. Average car, maybe a yearly vacation, shoes and field trips for the kids, eat out every once in a while.
Those that have made the transition, did you maybe notice that you were pulling in "X" on your W2 and now you show "Y" without a major impact?
I hope this isn't a dumb question. And talking to a tax guy is the next step. I want to get some of my general concepts straight so I am at least not in left field when I start extrapolating where the (theoretical) money needs to be divided up.
Thanks
My first thought is that you must make more as a small business owner, (say 30%) because your health care is higher and maybe self employment tax.
My second thought was that you can do the same with less, since a lot your expenses could be shared with the business (maybe like cell phones and stuff, or your wife or kids can be "employees") thus bringing down your Taxable Income and keeping a bigger portion of your Gross.
Yes, I know my tax guy would be the best to talk to but this is just part of my research process. I thought someone would be willing to share.
By lifestyle, I just mean typical family stuff. Average car, maybe a yearly vacation, shoes and field trips for the kids, eat out every once in a while.
Those that have made the transition, did you maybe notice that you were pulling in "X" on your W2 and now you show "Y" without a major impact?
I hope this isn't a dumb question. And talking to a tax guy is the next step. I want to get some of my general concepts straight so I am at least not in left field when I start extrapolating where the (theoretical) money needs to be divided up.
Thanks