401k LLC

[room7]

I got a great response about my question so now Im asking a similar question for a friend.

He has an LLC with 2 restaurant. He is the sole owner of the LLC and gets paid with a 1099. The restaurants have multiple w-2 employees.

Would the best tax savings come from setting up a Solo 401k? ($16.5k deduction?)
Is there a way to offer a 401k to employees and take additional deductions (matched amount)

Anyone have good reading references before we go speak to a financial adviser?

 

[teejayevans]

It depends on how much he is earning, what kind of participation rate he would have in the 401K and how old he is, plus how much he could afford to save, among other factors. Don't know where you live in CA but there is a financial radio show (raylucia.com) on at 9:00am during the week days, they handle these type of questions, might be worth a phone call.
TJ

 

[farmerEd]

Maybe I misunderstood your friends situation, but he owns an LLC that has multiple W2 employees, but he pays himself on a 1099 instead of a W2?

That's not going to pass the smell test.