That's One For You Nineteen for Me....
The taxman cometh. I just forked over about 52% of my total take-home income from the past year to the federal government and state of California. This is where having a business that works out becomes painful, though I can't help but think that a more devious accountant (yes, more devious than a ninja) could have done at least a little bit better.
In many ways the deck is stacked against us entrepreneurial types. We're taking advantage of the simplest and most flexible business structure, the LLC. We still pay self-employment tax, and our desire to build up the business and hire people means we're leaving money in the bank that we could be taking for ourselves, yet the IRS considers that as profit from a business and personal income whether we draw it or not.
So in an effort to expand we knock ourselves up a couple tax brackets without increasing our take-home pay a cent. I've been saving for it since last fall, but it still feels mightily deflating. No refund for me.
Oh well. First-world problems. If you're on the other side of the great class divide and wondering what to do with your Bush Money, here are some neat ideas.