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My sixth year as a bootstrapped founder

(mtlynch.io)
1071 points mtlynch | 1 comments | 16 Feb 24 15:07 UTC | HN request time: 0.236s | source
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pdq ◴[16 Feb 24 18:01 UTC] No.39400626[source]▶
General question when running a single member LLC: how do you determine how much to take as salary versus business profit, and how does that affect your taxes?

I'm guessing tax liability is mostly a wash, as if you are taxed as an S-Corp, you pass through the profit into personal income and pay income tax on that.

replies(2): >>39401374 #>>39409423 #
1. dugmartin ◴[17 Feb 24 13:56 UTC] No.39409423[source]▶
There is no difference in a single member LLC. All profits from the LLC pass though as income which is ultimately taxed at the same rate as salary (including SSI, Medicare, etc).