How much salary/SEP-IRA can I take out? Dear Group,
I have two C Corps I setup for some service related businesses. I am the sole owner, shareholder, and employee.
Each one had about 50K in income in 2009, with no expenses of any kind to date (in other words, I've paid myself no salary, no retirement contributions, etc). I want to take most of the money out now (to avoid the double Federal taxation issue).
How should I proportion out the 50K in each C Corp to minimize overall taxes? Salary to me, dividends to me, and a SEP-IRA contribution to me? If so, in what percentages? For example, can I give myself a salary of 10K, a dividend of 10K, and make a SEP-IRA contribution of 20K from each C Corp? Should I even do a dividend, given the non-deductibility to the C Corp but the savings of payroll taxes to me personally on the money?
Thanks.
Bob |