Hi There
The biggest change is to realize that, now as a business owner, all share of profit will be subject to 15.3%. self employment tax payable on your individual tax return. See below. This is in addition to regular income tax.
The self-employment tax rate is 15.3%, which is a combination of a 12.4% Social Security tax (also known as OASDI tax) and a 2.9% Medicare tax on net earnings. Self-employment tax is not the same as income tax. In 2024, only the first $168,600 of earnings is subject to the Social Security portion.
Tax moves should generally should made at the partnership level. E.G. buying and expensing business equipment will lower partner regular tax and self employment tax at the individual level.
At the individual level, depending on income, a good tax move might be a retirement plan contribution.
Please see below for more detail.
Retirement Plan
