"If one has an Limted Liability Company, where there is only
a sole proprietor, could all gross receipts go to the
company account and then a small W2 salery be paid to the
worker/owner with each paying their portion of the 15% SE
tax, and every quarter or so additional cash bonuses be paid
1099-div to the owner who pays income tax, but not SE tax?"

Well first off a sole proprietor can not take a wage from
their business. (W2) Second, I've never heard of a non
Corporate entity paying dividends.

"I'm under the impression that this could be done with a
Inc, where the quarterly payments are dividends, but can it
also be done w/an LLC?"

I'm not sure it could be done with the situation you
described with a corporation. It would depend on the amount
of capital invested in the business. Seems that all income
derived from a single owner/worker corporation would be the
fruits of the owners labor.

Regards,

Mark

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If one has an Limted Liability Company, where there is only
a sole proprietor, could all gross receipts go to the
company account and then a small W2 salery be paid to the
worker/owner with each paying their portion of the 15% SE
tax, and every quarter or so additional cash bonuses be paid
1099-div to the owner who pays income tax, but not SE tax?

I'm under the impression that this could be done with a Inc,
where the quarterly payments are dividends, but can it also
be done w/an LLC?

TIA

JeffP....

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->