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Need help to reduce the tax

Discussion in 'Business & Tax Advice' started by new2world, Sep 12, 2016.

  1. new2world

    new2world Registered Member

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    Hi,

    I need help, I am planning to make my company llc. Currently I am in different country where paypal isn't allow yet and I am using my brother's paypal. It's earning is stable now in x,xxx per month. My question is after making llc, can my brother send me amount as salary in my bank and show it to irs that he has sent $400 per month to me as a salary. There are two guys managing this company me and other guy and my brother is the owner who is not doing anything yet. So if we make total amount of income $x,xxx can he send me $400 and other guy who is also working $400 in my bank account or he has to send it separately in different bank ( my bank account and others guy bank account)?

    Kindly help, I know it's bit confusing to explain and we will also go for professional accountant for this but need to know how to reduce tax as much as we can.
     
    Last edited: Sep 12, 2016
  2. 710fla

    710fla Jr. VIP Jr. VIP

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    Honestly your better off going to a professional they can tell you tricks to cut down on your taxes and improve your money flow.
     
  3. SEOMemj

    SEOMemj Jr. VIP Jr. VIP

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    I'm no expert and I highly recommend you speak with a certified accountant but I'll give my 2-cents.

    To stay as IRS friendly as you can, this money should be transferred to a business bank account. As a business owner, your aim is to work to grow your business rather than your own personal wealth. Meaning you should take a reasonable salary based on your earnings but you should keep the business account growing.

    I've owned 2 companies in my life (USA) but again, I'm no expert at the whole tax area. When I spoke with my accountant I was told to only take my salary either quarterly or every 6 months. Not sure what the IRS thoughts on this are, though.

    Things are also much trickier if you're a partnership rather than a sole-proprietorship (both can be LLC's).

    Again, please speak with an accountant. Possibly even a tax lawyer.
     
  4. new2world

    new2world Registered Member

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    Thanks but what about the salary part. Can LLC pay salary to those who are not in USA (Like me and the other guy who is managing the company). We will get the free consultation also with tax lawyer for this.
     
  5. TheNumbersGuy

    TheNumbersGuy Jr. VIP Jr. VIP

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    I am unsure about the exact law in the USA regarding salaries being paid to non residential employees, that being said, you could always bill your company as sole proprietorship that way it will 100% be deductible. But I feel like the salary would be deductible anyhow assuming you are actively managing the company.
     
  6. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    Speak with an accountant as alreayd mentioned here a few times. That said, may we know where you live? it would make it alot easier.
     
  7. new2world

    new2world Registered Member

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    Thank you, I am from Pakistan, brother is in USA who will own the company and I and other guy who is also in Pakistan managing the stuffs. Thanks
     
  8. gling2

    gling2 BANNED BANNED

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    defo talk with an accountant. Use as many free consultations you can with various pros
     
  9. AceWallGromit

    AceWallGromit Regular Member

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    You giving your "Advise" from a van parked by the river?
     
  10. Offshore Banking

    Offshore Banking Newbie

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    Almost =). Defo from a very dark Place using many VPN Servers. LMAO =).