Business Tax Strategy Optimization
Budget: $250 – $750 USD
I’m a freelance software engineer earning about $140,000 per year and currently paying for private health insurance for my family (2 adults + 1 child, age 2). I’d like your advice on how to maximize after-tax income while maintaining access to affordable health insurance and other potential benefits.
Specifically, I’m considering different structures:
Sole Proprietorship (self-employed)
LLC
LLC taxed as an S-Corporation
C-Corporation
I’d like to understand:
The expected tax savings or costs for each structure.
How each affects my eligibility for ACA health insurance subsidies or deductions for premiums.
The optimal salary/distribution split if I choose an S-Corp.
How I can legally reduce Modified Adjusted Gross Income (MAGI) to qualify for lower insurance premiums.
Any recommendations on retirement plan setup (e.g., Solo 401(k), SEP-IRA) and other deductions (home office, equipment, etc.).
My main goal is to find the most efficient setup that keeps as much cash as possible after taxes while maintaining solid health coverage for my family.
Specifically, I’m considering different structures:
Sole Proprietorship (self-employed)
LLC
LLC taxed as an S-Corporation
C-Corporation
I’d like to understand:
The expected tax savings or costs for each structure.
How each affects my eligibility for ACA health insurance subsidies or deductions for premiums.
The optimal salary/distribution split if I choose an S-Corp.
How I can legally reduce Modified Adjusted Gross Income (MAGI) to qualify for lower insurance premiums.
Any recommendations on retirement plan setup (e.g., Solo 401(k), SEP-IRA) and other deductions (home office, equipment, etc.).
My main goal is to find the most efficient setup that keeps as much cash as possible after taxes while maintaining solid health coverage for my family.