Have 75 days to make "Entity Classification Election" - can cut SE tax by 50%
Must have revenue to use deductions! No ratio can be expected; however Sether used an example of $5K of income and $15K of expenses (That's why some businesses sell T-Shirts.)
In Complexity is Opportuinity!
Always keep receipts, especially for meals and entertainment.
Tax Strategies of the Wealthy:
- Self-insured Medical Reimbursement Plans (C-Corp)
- Making a MESS (Multiple Entity Structure Strategy)
- Estate Plans to distribute wealth (Businesses never die)