I have an LLC in USA that receives royalties that has enough deductions for income taxes per year to cover it – and no need for withholding since USA LLC – but FICA (“Sole Prop”) taxes (15.3%) still poke me.
I read that there are some [legal, of course] ways to structure my (US) company and my wife’s (TW) company to better lower tax liabilities – and/or better ways to have “good debts” that can lower FICA liabilities. I file USA taxes as “married, filed separately”.
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I read that FICA taxes are only applicable when I pay myself: Any fancy structure to help lower this liability when paying myself? Eg, if I pay my wife’s company for their services, then I get paid through my wife’s company (instead of my own) – would that help? Then, my foreign-earned income would be deductible –
- BUT, we’d owe more taxes to Taiwan … which is easier to deduct? I’m still looking into Taiwan contractor payouts: I hear that it’s super easy to deduct things EXCEPT for payroll. However, do contractor (not employee) payouts count as payroll?
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I read that I can invest in IRA’s and such for a set amount per month to temporarily reduce tax liability: Is this FICA deductible? If so, what else can I do to deduct FICA?
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I read that I can pay myself less to owe less FICA: Any legit, wiser workaround to this?
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Any other general advice that could lower USA tax liabilities in my situation?