Originally Posted by dsp0725
- LLC made $173k
- I personally made an additional $8200 net from part time job
First of all, you should be maximizing your LLC's business deductions. A company car, off-site meetings, meals and entertainment, office expenses, travel, equipment, cell phones, etc. You pay a 0% tax rate on business expenses. You can even fund a SEP IRA.
Then, you should be taking a salary, via a W2 or 1099. It should be ~50% of what is left. If you are a Java Developer, take $50K as a salary. You pay a 15.3% self employment taxes, plus normal income taxes on this amount. Use a SEP or 401K to save money.
Take the remaining money as a dividend. You pay normal income tax on this income, but no 15.3% self employment tax.
With the money left over, save it.