June --
I work and live in San Diego CA, I am a mortgage loan processor and just started as an independent processor. I get paid per loan closed. No hourly pay. I get $400 for each loan I close and was promised at least 10 loans per month. So if I make about $2000 every other week, how much should I take from that check to put aside to pay for my Federal State Tax, Social Security taxes and possibly self employment tax?
I will have several deductions at the end of the year for working such as my transportation, office supplies, cell phone, use a room from home as my office etc.
I thought I should put aside at least 25%, am I thinking right?
Look forward to your answer.
Thank you, Rose
San Diego, CA
Hello Rose,
You need to put aside between 30% and 40%. Take a look at this column on my website for an explanation Taxes: Which ones and how much do I pay?.
-- June
Showing posts with label MORTGAGE BROKER-PROCESSOR. Show all posts
Showing posts with label MORTGAGE BROKER-PROCESSOR. Show all posts
Thursday, December 11, 2008
Tuesday, April 24, 2007
Which business entity is best?
June --
I am a Mortgage Brokerage / Home Remodeler.
What is the best business entity to form to minimize tax and personal liability as a home remodeler?
-- Guy
Hello Guy,
If you use the right tax professional, and set up the correct self-employed pension, then you should be able to get get every tax break you need as a sole proprietorship. Sole proprietorship is also the easiest and least expensive business structure. .
If you need liability protection then register as a Limited Liability Company [LLC] set up as a sole proprietorship. Then look for any other potential liability and get additional insurance to cover those. Take a look at my post LLC? Incorporate? to learn a little more about LLCs.
Don't let some fast-talking accountant bully you into a business structure that you don't need! You may need to incorporate because of factors not evident in your email. If you do, be sure that you understand the reasons why and also what are your obligations regarding maintaining the protection of a corporation.
BTW -- You don't say whether or not you are married. They are many benefits to hiring your spouse.
Best,
June
I am a Mortgage Brokerage / Home Remodeler.
What is the best business entity to form to minimize tax and personal liability as a home remodeler?
-- Guy
Hello Guy,
If you use the right tax professional, and set up the correct self-employed pension, then you should be able to get get every tax break you need as a sole proprietorship. Sole proprietorship is also the easiest and least expensive business structure. .
If you need liability protection then register as a Limited Liability Company [LLC] set up as a sole proprietorship. Then look for any other potential liability and get additional insurance to cover those. Take a look at my post LLC? Incorporate? to learn a little more about LLCs.
Don't let some fast-talking accountant bully you into a business structure that you don't need! You may need to incorporate because of factors not evident in your email. If you do, be sure that you understand the reasons why and also what are your obligations regarding maintaining the protection of a corporation.
BTW -- You don't say whether or not you are married. They are many benefits to hiring your spouse.
Best,
June
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