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?
First: Get a new accountant and put them on retainer so that you can have year-round guidance on avoiding this.
Second: Spend money in Q4. Lease yourself a “company car.” Upgrade equipment. Take a long business trip, etc.