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Richard, Tax Attorney
Category: Finance
Satisfied Customers: 55304
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I am looking to create an LLC in the state of Oregon, and

Customer Question

I am looking to create an LLC in the state of Oregon, and would like advice on the best method to disperse income.The LLC is a technology consulting firm.
The LLC will have 2 partners one with 49% and the other with 51%.
Currently, we have clients who are invoiced separately from each partner, and they pay each of these partners directly. We also both have sub-contractors, of which invoice us for their time.
In addition to creating some liability protection with the LLC, we would also like to be 'employed' by the LLC. We would like all invoices sent to clients from the LLC, and all payments made to the LLC.
Can you provide suggestions to avoid as much tax as possible but, possibly still be employed by the company and pay into social security? Also, how should we treat the profit the company collects after paying ourselves? Should we invest it, pay out as a bonus to ourselves, or allow the company to hold onto it into the next year?
Any suggestions on the best structure to start off on, would be great. Cheers!
Submitted: 6 months ago.
Category: Finance
Expert:  ABC Accounting Group replied 6 months ago.

Hi. Great Question.

It sounds like you are a partnership. You can pay you and your partner a salary. To pay the salary, you will need to withhold payroll taxes and file quarterly/annual federal returns (940/941) & Form 132 for Oregon payroll taxes.

All revenue, wages paid out, and expenses, go on the 1065 form is provided on you and your partners K-1, based on your percentages of ownership.

LLC is a great idea, since it limits your liability, but is less paperwork than an S-Corp.

Customer: replied 6 months ago.
You didn't really provide me with an adequate answer, and completely avoided some of the questions. Very disappointed, almost like a bot or canned response.
Expert:  ABC Accounting Group replied 6 months ago.
Hi. This was not a canned response. I will opt out, so another expert can help you.
Expert:  Richard replied 6 months ago.

Good morning. I see your prior expert has opted out. My name is Richard. Do you still need assistance? Thanks.