62 year old sole proprietor, will work for the next few years making over $100,000.00 per year. Also considering taking early Social Security retirement benefits.
I have made a good income for a long time and have probably maxed out on Social Security retirement benefits.
Social Security says that “Operating as an S corp will give you more money to reinvest. The downside is that you will have smaller Social Security benefits in the future.”
I’m aware that money retained or distributed as dividends from an S corp. are not subject to SS or Medicare taxes.
Should I form an S corp?
Is it OK to take early SS retirement benefits? Benefits and disadvantages.
Thank you for your help.
S corp - Social Security - tax question.?
You have asked a very big question! First let me give you my standard opinion on S Corps and the like.
In 1849 there were people that sold a type of oil that was reported to collect gold from the ground if you spread it on your body and rolled around for a while. LLCs, Limited Partnerships, and S Corps for most small business owners make about as much sense. If you have attempted to form one of these please send me your order for a deluxe “Gold Oil Kit”.
So be careful before you move in that direction.
As for early SS benefits there are so many variables that I would not know about it is difficult to give a clear answer. The one factor that I always consider is you personal likely hood to live long enough to collect. If you are reasonably healthy wait until you reach your "regular " retirement age which would be 66 in your case. That way you are less restricted by the money you do earn and you are getting the max benefit.
Reply:S Corp is definitely the way to go...
pay tax after all expenses are paid.
Reply:Did the SSA bother to tell you that the checks you draw for retirement will be based on your last 5 years of working income, just prior to retiring. It would be of no real benifit at this point to incorporate, unless you have employees.
No comments:
Post a Comment