If I own a company with 1 employee and want to start a savings account?
If I work as a Business owner and have remaining (net) profits left, can I put this money into a savings account or a retirement type of plan, that way I can earn interest and not pay the remaining balance?
Is this illegal?
Filed under: Retirement Planning
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You may be able to start up a retirement account and defer taxes. See your tax professional.
Helen, EA in PA
as a self employed person, the amount of your net profit is all yours to do with as you choose
if you wanted to start a savings account or anything else you can do so
however in your personal name, don’t put it into something in the name of the business because if this will be included in the business income that would increase that amount that you would pay your own self employment tax
you can invest in a Roth that is tax free at deposit and distribution
and IRA will be a tax deductible at deposit but taxable when you take distribution