Ok, tax time around. LLC S-corp. My wife has her W2 and I do have mine. The profit is $100k. My tax accountant says I have to pay our tax bracket on this profit. In our case 30%. So $30k in taxes.

I get that I have to pay taxes but what is the best way to deal with this? I can’t predict the year end profit so I don’t want to pay quarterly.

How do you deal with this?

  • EmicationLikely@alien.topBEnglish
    1·
    1 year ago

    A lot of comments seem to assume that profit = cash in the bank. You can only spend what you have. Depending on the industry, you can have some/most/all of your profit tied up in receivables…which you can’t spend. If you are in this unlucky corner, then you’ll need to borrow to spend on anything extra, which isn’t nearly as fun as spending extra cash.