Bookkeeping

What’s the best way to set up your business if you have multiple revenue sources out side of business?

Have multiple revenue streams and full time job? Need to know best way to set up businesses for best tax strategy.

in progress 1 Answer

Answer

  1. 74 Answers

    Hi there, I may need further information here. How the business should be set up depends on a lot of factors such as the nature of the business? Is it real estate investments for example of retail? What your anticipated net income for the year would be? If you are the sole owner of the business or have partners? Even how much you make with your other job could be a determining factor in how you set the business up.

    What I can say is that if you are a Single-Member LLC or Sole Proprietorship the net income of the business would be reported on your 1040 and you would not be an employee meaning you can not set yourself up on payroll. If you opt for a Corporation or S-Corporation you can set yourself up on payroll as an employee and have your taxes withheld as a normal employee would. Many business owners start as a sole proprietorship and once their net income reaches the $35-40K mark they will then switch to an LLC or S-Corp. As I mentioned there are a lot of determining factors associated with how to set the business up.

Leave an answer