I am looking for options to my dilemma.
I am 17 months from FIRE and have the finances in order. However, almost half of my money (cash) is tied up in my business (corporation/Limited company).
My wife and I are the sole shareholders and the company is not public.
The company is fully invested in the market and is producing income from these investments in the form of dividends.
My idea (when FIRE'd) was to continue as an employee of this company and pay a salary to myself and wife, and add this to our personal finances.
My current questions to those in the know are:
1. Can the company be kept active and operate this way, or must the co be generating income from non-investments sources.
2. If no to #1, then how can I get the cash out of my company without incurring obscene personal tax liabilities.
Since I can 'see' only 2 options, I feel there must be others that I cannot see.
Any ideas?
Thanks
greeny
I am 17 months from FIRE and have the finances in order. However, almost half of my money (cash) is tied up in my business (corporation/Limited company).
My wife and I are the sole shareholders and the company is not public.
The company is fully invested in the market and is producing income from these investments in the form of dividends.
My idea (when FIRE'd) was to continue as an employee of this company and pay a salary to myself and wife, and add this to our personal finances.
My current questions to those in the know are:
1. Can the company be kept active and operate this way, or must the co be generating income from non-investments sources.
2. If no to #1, then how can I get the cash out of my company without incurring obscene personal tax liabilities.
Since I can 'see' only 2 options, I feel there must be others that I cannot see.
Any ideas?
Thanks
greeny