EmptyWallet
Confused about dryer sheets
- Joined
- Dec 23, 2013
- Messages
- 6
I'm considering having my wife set up a LLC in order to start a Solo 401k to reduce our tax bracket. I would appreciate any advice or suggestions that you may have.
Looking forward to 2014 our numbers should look something like this:
I should make about $100,000 in taxable income.
My wife should make about $60,000 in taxable income.
I will contribute $17,500 to my Thrift Savings Plan (military 401k).
We have two rental properties that provide about $45,000 in rental income. We still owe a combined $450,000 on the properties.
We have $1 million in investments.
My wife is a "contract" nurse, and her income is reported on a 1099. She will only be working at this job for 2014 and part of 2015.
I'm just starting to research the best approach for us. After searching this site, I found a discussion concerning similar circumstances that stated that a LLC wouldn't be necessary to start a Solo 401k. Although I know it shouldn't be much of a hassle to start the LLC, I haven't looked into the requirements much.
My questions are:
Do I need to start a LLC to start a Solo 401k?
Does the benefits of a LLC outweigh the risk of not having one? I believe that my wife is protected against lawsuits (etc) through her contracting company.
If I start a LLC, do I need to start it in Hawaii (currently live) or can I start it in another state?
Is there a better option than the Solo 401k?
Thank you, in advance, for any advice/suggestions.
Respectfully-
Jeremy
Looking forward to 2014 our numbers should look something like this:
I should make about $100,000 in taxable income.
My wife should make about $60,000 in taxable income.
I will contribute $17,500 to my Thrift Savings Plan (military 401k).
We have two rental properties that provide about $45,000 in rental income. We still owe a combined $450,000 on the properties.
We have $1 million in investments.
My wife is a "contract" nurse, and her income is reported on a 1099. She will only be working at this job for 2014 and part of 2015.
I'm just starting to research the best approach for us. After searching this site, I found a discussion concerning similar circumstances that stated that a LLC wouldn't be necessary to start a Solo 401k. Although I know it shouldn't be much of a hassle to start the LLC, I haven't looked into the requirements much.
My questions are:
Do I need to start a LLC to start a Solo 401k?
Does the benefits of a LLC outweigh the risk of not having one? I believe that my wife is protected against lawsuits (etc) through her contracting company.
If I start a LLC, do I need to start it in Hawaii (currently live) or can I start it in another state?
Is there a better option than the Solo 401k?
Thank you, in advance, for any advice/suggestions.
Respectfully-
Jeremy