Investing and Tax?? Im Lost

[Javi007]

Just started my own business and i have a 1.7MM Contract, that could leave me with 800k after expenses.

I have a LLC, and accountant, but i wanted to know from a investor stand point..

How can i invest those 800k, before Taxes eats them alive?? I dont have a problem to pay taxes for everything that investment does; but its there a way i could do this?? Or do i have to pay taxes then invest whats left?

My corporation is to do business in whatever generates income; so i could do whatever i want..

If i just use the money that its left after i pay the business expenses, to invest and just live from the earnings from that investment its ok for me..

Maybe work 4-5 year and work only with the investments.. Lets say buy a gas station and a property, then the next year, if i make 800k, buy a strip mall etc.etc.

Can i do this?? Or what do you recommend to invest before the taxes??

I just want to know if i need to pay taxes before investing on a commercial real estate or business, or can i invest all the earnings, and pay taxes from the earnings of that investments..

Thanks
JC

[Petunia 100]

Just started my own business and i have a 1.7MM Contract, that could leave me with 800k after expenses.

I have a LLC, and accountant, but i wanted to know from a investor stand point..

How can i invest those 800k, before Taxes eats them alive?? I dont have a problem to pay taxes for everything that investment does; but its there a way i could do this?? Or do i have to pay taxes then invest whats left?

My corporation is to do business in whatever generates income; so i could do whatever i want..

If i just use the money that its left after i pay the business expenses, to invest and just live from the earnings from that investment its ok for me..

Maybe work 4-5 year and work only with the investments.. Lets say buy a gas station and a property, then the next year, if i make 800k, buy a strip mall etc.etc.

Can i do this?? Or what do you recommend to invest before the taxes??

I just want to know if i need to pay taxes before investing on a commercial real estate or business, or can i invest all the earnings, and pay taxes from the earnings of that investments..

Thanks
JC

I think you should talk about tax strategies with your accountant.

Things to keep in mind:

An LLC is a pass-through entity, meaning the net income is passed to the partners, who then declare the income and pay any tax due.

Yes, you can invest your estimated 800k of net income into capital assets, such as a strip mall. However, this does not mean the 800k will escape income tax. Real estate is not expensed in a single year, but depreciated over time.

Congrats on starting such a lucrative business.

[jIM_Ohio]

Just started my own business and i have a 1.7MM Contract, that could leave me with 800k after expenses.

I have a LLC, and accountant, but i wanted to know from a investor stand point..

How can i invest those 800k, before Taxes eats them alive?? I dont have a problem to pay taxes for everything that investment does; but its there a way i could do this?? Or do i have to pay taxes then invest whats left?

My corporation is to do business in whatever generates income; so i could do whatever i want..

If i just use the money that its left after i pay the business expenses, to invest and just live from the earnings from that investment its ok for me..

Maybe work 4-5 year and work only with the investments.. Lets say buy a gas station and a property, then the next year, if i make 800k, buy a strip mall etc.etc.

Can i do this?? Or what do you recommend to invest before the taxes??

I just want to know if i need to pay taxes before investing on a commercial real estate or business, or can i invest all the earnings, and pay taxes from the earnings of that investments..

Thanks
JC

You need a good CPA.

Among the issues to discuss- C corp vs S corp- it may make sense to keep money in business and not have it get taxed on your personal return.

a SEP IRA could defer taxes, as could an executive compensation plan (you may need more than one LLC to do this).

If may be easier getting health insurance through a C Corp (my attorney mentioned that to me). Make sure you have a good CPA and trust them.