I currently work as a teacher in education. We are looking at re-opening our family business and I am considering leaving education and pursuing self-employment. I will be paid and have my benefits up until the end of the current fiscal year (July 2022). What are you opinions on how I should proceed from a tax advisor standpoint? I am considering rolling whatever profits back into the business, or should I pay myself a wage? I know there are other questions that I probably dont know to ask at this time but what should I do from a personal standpoint? Thanks!
It depends. How you prepare your taxes for the business will result in how you organize the structure of the business.
The money you put into the business will be offset by bills that you pay or supplies that you buy. So any money you put in will be accounted for with expenses.
For your teaching job, you will include that income on your personal return as you have done in the past.
Regarding the question about a salary, it will depend upon the business entity you choose. If you select the Schedule C option, you should not take a salary.
I recommend consulting a legal profession to determine what business entity type to use for your family business.