<chambersdon[at]hotmail.com> wrote

- quote -

Single member LLC's are treated the same as a self-employed
person, unless you elected to be taxed as a corporation. As
a single member LLC, you shouldn't have paid any salary
(wages) to yourself. Instead, all the profits are taxed to
you, and within limits, subject to SE tax as well.

Find a local CPA or EA in your area how can, after assessing
the specific facts and circumstances, make suggestions that
will be of benefit to you.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

chambersdon[at]hotmail.com wrote:

- quote -

You obviously do not know what you are doing. A single member
LLC is a disregarded entity for tax purposes, unless you
elected to be taxed as a corporation. If you made that
election without consulting a qualified tax professional, you
made a major mistake.

Even if you do the bookkeeping yourself, you need an accountant
to explain the rules and to help you comply. If you are the
only employee, you don't have a payroll!

You should listen to your friends about a good accountant. The
main things should be that he/she is qualified (a CPA or EA)
and you feel comfortable communicating with the person. If
you are not sure, make appointments to meet with several --
there should be no charge for an initial consultation -- then
pick the one that you feel most at ease with.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I have small business (LLC) of which I'm the only employee
but I do occasionally have some 1099 contractors do work for
me. I've paid myself a market-rate salary but I've ended up
with over $70,000 cash in the bank and I'm not sure what to
do with it.

If I leave it in the business, I will have to pay corporate
income taxes and then personal taxes later when I finally
pay it to me. If I get it out now I will take a big tax hit
it and will no longer qualify for contributions to my ROTH
and Coverdell.

I do not expect next year to be this good and would like to
find some way to defer payment until next year, or the
following year.

I am in the process of getting an accountant and I have some
question about that I'll ask in a separate post.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >