Save Taxes on Large Windfall

[Robert Shoffner]

I have a good problem on my hands. I am about to close on my rehab that took about 6 months from buy closing to sell closing. I also expect to do very well and receive a big, one-time windfall of cash.

I am a little concerned about paying very high taxes on the gain. It was done through an LLC. I am exploring tax-savings options. One idea is to W-2 myself and do a huge contribution to a solo 401k. I am a little reluctant to have so much placed into a retirement acct when my business needs it now. I believe this income is considered active, self-employment income, and is subject to self-emplyment tax (15.3%, employee and employer portions of social security and medicare). Someone else mentioned creating a 'C Corp' and charge the LLC a large consulting fee, moving money away from high tax into a corporate acct.

Does anyone have anything to share about what they did in a similar situation?