Beastie Boys Message Board - Taxes in the USA

Im still learning some hard lessons and as I get older I am becoming old and bitter, yet I am also become more patient and love being with family more than ever.

Now to my hard lesson: For better or worse I work for myself and have about 16 employees, 13 of which have been with me over 3 years and I think we have a good thing going.

This year when I got my K1 tax form it looks like I made a lot of money. I technically paid myself about $50,000 last year and spent the rest on the business.

Here is my point, once I got my tax bill showing that I owe over $100k, I could not help but ask, how is this? I earned $50K in my opinion and that’s it. So I called an attorney and high level CPA and they explained if I created 4 different LLCs and make the money flow in a different way with a few different bank accounts I would then be able to save over 60% on my taxes. I just wish I could work and pay my fair share. Instead, I have to hire attorneys and CPAS so I don’t send as much money to the IRS. There is a local city commissioner that will help me save tax dollars for a fee, he explained he helped create the tax language so he can work it great for a fee.

SO, if you have high taxes, you can work the system that is built by our tax paid officials, you can save a lot of money and I think this concept is bull shit, but I have 2 CPAs and an attorney building what I call the low tax game. I will probably spend my tax savings this year on the attorneys but will be set for upcoming years, I hope.