Anyone have a LLC in California? Not sure how to save on taxes in CA with 500k profit

Discussion in 'Taxes and Accounting' started by dtryan, Apr 26, 2020.

  1. dtryan


    Just wondering what entity people here have and how it can benefit if I have 500k gains this year
  2. dtryan


    If someone posts a serious answer here I'll post proof if needed
  3. Why would you post proof? We're all just internet strangers.

    With 500k gains, I'd get in touch with a tax attorney in your state. It'll cost you more than asking here, but my hunch is that you'll be able to save a lot of money down the road if that's the kind of gains you'll make regularly.
  4. dtryan


    Because if people think I am a troll, I would not get serious answers. Is greentrader good? I heard mixed experiences hence why I haven't contacted a cpa yet. Any other recommendations or can someone answer my question that has experience? Thanks
  5. neke


    The market volatility must have done wonders for you! You have till year end to look for an entity (I believe by this year you mean 2020).
  6. dtryan


    This year has been amazing. Yes 2020. I read C corp is bad in California and S corp main benefits is health insurance and retirement plan. I am in my 30s so my health premium is only 2k a year which isn't much. I'm more wondering about the 59k profit sharing and retirement plan though
  7. Girija


    Why wouldn't you talk to a CAP and pay him 100 or 200 ?
    For this year you can stash up to 57K in SEP IRA. Other deductions may depend on whether you go thru std deductions or itemized.
    State hardly matters since you have to work on fed.
  8. RRY16


    You should be paying Quarterly unless you’re a 1 trick pony.
    SPYAlgoTrader likes this.
  9. Quick comment re retirement plans. I don't know exact entity requirements or employee-count requirements, but you MUST look into a combo of a 401k-PSP (profit sharing plan) AND a cash-balance pension plan (which is a traditional ERISA pension plan, but instead of guaranteeing a fixed payment, it guarantees an amount, i.e., a cash balance). Here's a table that I quickly found on the net (it is NOT from the law firm or actuarial firm that we use)
    Note that even at your age, the amounts you can sock away for retirement are much larger (and for us older folk, the amounts are HUGE).
  10. Ifitis


    Buy and read this Someone suggested I do that in another thread The publication contains information on what you seek. Cost is 50ish dollars, so cheap. Also read the Web Site associated, they offer consulting for that exact questionyou are asking.
    #10     May 4, 2020