AboutRichard Fritzler Expertise I am in the business of tax planning for business owners. Our company helps business owners structure so that they can be reduce the taxes that they owe, making them far more profitable.
Experience Since 1986 I have been helping successful business owners reduce taxes, protect assets, and limit their liability. The company is Owelesstax, incorporated at www.owelesstax.com
Organizations National Small Business Owners Association.
Nevada Association of Listed Resident Agents.
Citizens Legal Association
The Business Owners Institute
Publications Contributing author to "The Corporate Standard Newsletter".
I am also a writer for an email newsletter about business
Googlegroups/Successfulbusiness
I am also an Expert in the areas of Tax Law, Retirement Planning, and Estate tax issues.
Question I MAX OUT ON MY ROTH EVERY YEAR. I JUST WENT FROM A SOLE PROPRIETOR TO AN LLC. SHOULD I TRY TO MAX OUT ON A SEP OR PAY TOWARDS MY $97,000 HOME EQUITY LINE? I AM 53, THE LINE IS PRIME MINUS .5% AND I AM IN THE 28% BRACKET.MY GROSS INCOME IS ABOUT $100,000 AND MY NET IS ABOUT $70,000. DO YOU HAVE A BETTER IDEA FOR LOWERING MY TAXES?
Answer Follow up to the question below:
In your rating you said "he gave me just enough to bate me and try to sell me something." All I suggested was that you call me. Not because I intended to sell you. Truly my primary reason is because I answer questions all the time and I try to be far more explanatory than just popping off quick opinionated quips, and many times (this one included) we had gone far afield of your original question. If I had bored you to death already, then I was going to save you and Me some time and cut it short. If on the other hand you did really want to discuss it, I have found that we can cover a lot more ground in a live discussion than we can through a delayed messaging system where I can't get feedback to see what details I need to explain more completely.
I don't care about the rating, this follow up is simply to make sure that you don't feel that you were somehow mistreated. If I can be of additional assistance I continue to offer my phone number for your use.
Richard Fritzler
www.owelesstax.com
www.nevadacorporateservices.com
phone 800 590-6612
Do you feel confident that you have explored and exhausted all of the conventional wisdom, when it comes to reducing your taxes?
I'd say from your concise description above, you have a good handle on all the conventional scams, schemes, programs and plans for an individual to busy himself in tax planning.
As you are starting to realize there is little if any real tax relief for you as an individual. Your changing to an LLC did not make a lick of difference. Since the LLC is a "Disregarded Entity" for tax purposes and you are still considered a sole proprietor by the IRS.
You can thrash around all you want where you are and you won't make much difference. Let me just fast forward a little and squash the "File the LLC to be taxed as a Corporation, then file to be taxed as a sub-S corporation" gyrations. You will still be taxed as an individual on your personal tax return at your personal tax rates.
Do you see a pattern?
Let's step away from the "personal" for a moment.
What I am going to explain I am going to call the "SECRETS" of business success, not that everyone is sworn to secrecy, only that as you hear most "financial advisors" talk -- it is obviously a secret from them.
Conventional Wisdom is that wisdom that is passed around at the sales convention. And that the effective wisdom that I am going to explain is proven, and extremely common, it just doesn't trickle down to the flunkies sitting in strip malls reading the latest "how to sell accounting services" magazine waiting for someone to stumble in with a tax return need.
What if I told you there was a Retirement plan available to business owners that would allow you to put $50,000 away; not in your ROTH that would require that you pay "PERSONAL" taxes on the money first, and not in a SEP that will require that you pay "PERSONAL" taxes on all the money later.
In fact you wouldn't have to "PERSONAL" taxes on it at all. It is self directed plan, with no restrictions. What do I mean by "No Restrictions"?
Well, you can invest in A...N...Y...T...H...ING.
You don't have to wait for 5 years or age 59.5 to retire, you don't have to retire at 70.5, it is not tied to annuities or insurance. The amount of contribution is not tied to your personal income level, nor do you have to include employees.
You didn't tell me what type of business you are in. . .
may I ask you to list the 3 or 5 largest most successful businesses in your general field of expertise?
Are they LLC's?
If you will allow me to expand your question so that you can really enjoy some tax relief, then call me, if you want me to limit my answer to the question as posed above, I'd say, it doesn't really matter, paying off your HECL doesn't reduce your taxes, it simply reduces you outgo. A SEP is at best a "zero sum gain". Although you won't pay taxes today on the money you put away, you will pay taxes later on all the investment and the increase. Run the numbers and that is zero gain. It gets worse if tax rates increase by the time you retire. Then you have postponed a 28% tax just so you can pay a 30 or 33, or 60% tax.
Richard Fritzler
www.owelesstax.com
phone 800 590-6612
