Mark Kohler says small-business owners should form an S corporation once income hits $50,000. The strategy pairs an S corp with an LLC and retirement accounts to funnel profits into IRAs or 401(k)s, which can then invest back into the business instead of traditional stocks.
If you have operational income that exceeds $50,000, I really, really encourage you as you move forward to start building an S corporation into your trifecta. When we look at the big picture, you have an S corp on this side and we get back over to the asset side, that's the llc. So we have our trifecta now with this S Corporation. What's exciting is it can start to feed your IRAs and your 401ks and you can have both. You may have a 401k just for you. It depends on your employee structure. You might have to include some employees, but there are so many options. And again, I just want to expose this because it gets to be really exciting. Because if you have old 401ks from a prior job, an IRA, maybe even a health savings account, we can start to invest this money not in Wall street, but in what you know best. So these types of LLCs are now owned by your retirement accounts or tax free money. So it's a next level strategy that all the rich people use. Now if what we've talked about so far is a little overwhelming, please let me ask you to take some action and call my law firm. We have been around for over 20 years. I have 14 tax lawyers that help Main street business owners affordably all the country. And you can get on a zoom call with a real lawyer and talk about your trifecta and we will build it for you.
The secret to managing your family's future #financialfreedom #estateplanning #shorts
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