Corporate Tax Structure Strategy for High Earners

Her, there's Abel. How are you today? Good girl, yourself. I'm good. And is your beautiful wife with you?

She is at work. She's a nurse. So she's a busy, busy nurse. So she, unfortunately, she's not with us today. Okay, my

new daughter in law is a nurse. You're in Texas. Where are you in Texas? El Paso. Awesome. All right, your question, you're working with Sandy, your wife and I are w2 employees. You're paying too much in taxes? Yes, you're considering open an LLC to reduce your tax liability. I'm a hands on topic guy. And

considering pool cleaning services home remodel. I love all of those electrical plumbing you do all those things?

Yeah, I'm a multi tester, so I know how to do a lot of things with my hands. So perfect. Obviously, I've helped a lot of people along the way. Now I would like to help myself.

So, no, I love it. And an LLC may not be big enough for all those things, but just so you know, that lineup of products and like services that you could provide. I mean, you know, that's a million dollar that's a couple million dollar company, okay, if you want to do it, if you want to really go for it,

just do some hustle. I mean, that's, that's, I mean, any one of them could be a million dollar company by itself. So I mean, you're sitting on amazing skill set that's extremely lucrative, and, as you know, probably hard and becoming harder and harder to find good quality people. So making the

business decision to jump would be critical, and LLC is going to reduce your tax liability by a little an S corp or C Corp would be bigger, but it's going to those. Those decisions depend on how big do you want to make this mean? Are you eventually wanting to quit your job? And then this is all then you go all in

because then it's a big operating company, and then you have the whole tax code. If you're just going to buy real estate through an LLC, you're only getting a small part of the code. And a lot of people don't realize that just an LLC alone, I mean, it can affect your taxes quite a bit, but not to the

magnitude of having a combination of either an LLC, an S, an LLC, A, C, or one of all of them is the biggest strategy of one of each of them in a very strategic way. And you you know, then your whole focus is, go make a lot of money, and the tax teams will make sure you come in really lean. And yeah, you're,

you're in a great investment market too. So as you make the money, mean buying real estate. You're in the gas and oil field of heaven. I mean, you're right, you're right around that whole area. I mean, I do so much work in the Permian Basin, so, I mean, just, just to make you,

to give you a little bit of background. So I'm a federal employee. I work for the DOD, obviously. Right now we're in shutdown. That's why I'm here. Okay, 100% so, well, good. I've been the testing world for 22 years. So that's, that's what I do. So for a living, my wife has been in the nursing field for

like 13 years. She was an accountant. She did a 360 turn around from an accountant to be wanting to become a nurse. So yeah. So we were, per se, right in in our own little world, we were comfortable with just being w2 employees and raising our children, what not, but right now, with her income and the

amount of hours she's working, obviously raised our, our, our w2 pay quite a bit, so that put us in a in a bind With the taxes being paid at the point is like, we're, you're very, I was not even familiar with the tax code. I mean, obviously they withdraw your taxes. You keep on going back next day to work, and

you're not even aware of how much taxes you're paying, right? So last year, we had a burden like $58,000 in taxes. So that's how much we paid. So right now is me as an engineer working for the federal government. I to be honest with you, I, like I said, I do a lot of site favors for for the family and friends or

whatnot, but had never thought of becoming an entrepreneur and and a businessman, but I think it's doable because I trust myself and what I do and a lot of projects that I've done. So at this point, it's like, okay, so we want to retain a lot of that money for ourselves versus paying it goes down, right? So

Well,

and that's why, like you said, you didn't know how big the tax problem was. That's why I call it an invisible pain, because everybody's just used to paying for it. So if you wanted to keep the jobs, very similar to Jason, right, who we just talked to, then it's an investment strategy. Because having other

companies, I mean, I would still do probably in Texas for. To be an S or an LLC, for if you wanted to do it and keep it a side hustle and keep your job, but then you got to turn like Jason, and you got to make your investments depree Like have heavy depreciation schedules, real estate, case, gas and oil,

aviation, those kinds of s of assets, is what you get in you know, you look at and start learning more about, how do you, how do you do that, and how does it affect you? So yours is really a decision of, you know, do you want to keep your job do something smaller scale? I mean, but you still, I mean, these

skill sets are huge. I mean, it wouldn't take much to make 100 200 grand in any of these categories. So you could have both. But if you keep the jobs for for both of you and your wife, you both keep W twos. I mean, it's the investing that affects you the most. The LLC will help, but it's the

investing, because you get the bonus depreciation and you get all those depreciation schedules. So again, it's just as a math equation. So the way our teams work is we'll just give you the scenario either way, and then you decide you could just go into it smaller, and then by next year, you might

change your mind. I mean, that's what a lot of our clients, that's why we've been on ground for so long. You might change your mind next spring or summer and say, I'm ready. I'm ready to go full time. I want to go be an entrepreneur, but it's up to you know, you don't have to go race there right now. Just want you

to know the variables. When are you talking again?

Um, I haven't really, we haven't really set up an appointment, but, I mean, it can be as soon as today, tomorrow. Like I said, I'm on shutdown right now, so I'm available.

Sandy, available? Yeah, I sure enough. Am perfect. All right, well, and if you have any other questions, able as you get into the conversation with Sandy. Conversation with Sandy, let me know or let her know, and I will be right back to you on answering your questions.

Thank you very much for your time.

Thank you absolutely. Have a great day.