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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: Jon Tara who wrote (24532)1/13/2005 11:03:21 AM
From: SeaViewer  Read Replies (1) of 110194
 
If you set up an LLC, you get some real flexibility. You can arrange for part of your income to be self-employment income (and thus making you eligible for the Defined Benefit Plan) and any excess beyond what is needed for that as Ordinary Income (and thus not pay Self Employment Tax on it.) Salary or guaranteed payments are self-employment income. Distributions which are not guaranteed payments are Ordinary Income. You can slice it whichever way works out best for you.


Jon,

So people don't need to pay SS tax on Ordinary Income, don't they?
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