I'm thinking about buying an Auto Repair Shop and need some tax advice. Or advice from someone good at math.
The shop is for sale for $135,000 - all inclusive. I will be the owner, and I will have one employee who I want to pay on the books $10.00 to $15.00/hr. Previous owner had a profit of roughly $60,000 per year. My hope is to bring it up to about $80,000 per year.
My mortgage, tax, water & sewer payments will be around $2,500/mo.
Insurance will be about $300/mo.
I do NOT want my personal taxes to show that I am making any more money than I am now. So if the business is making a profit of $500 or $500,000 per year I do NOT want my taxes to show that as income for me personally.
1. Would it make more sense to incorporate as an LLC or C-Corp? I want to keep the taxes and business completely separate from my own taxes. What would be the business tax rate difference between the two?
2. If I did do an LLC, is it possible to not do run-through taxes? E.g., file a separate tax return for the company?
3. If I have a profit but invest it back in the business, is it still reportable as profit?
4. Any other issues you can think of?