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Updated about 5 years ago,
Can I rent to my own business to avoid SE Tax?
I am going to rent a private office and my plan is to make an LLC that collects rent from my personal business.
By doing this, my business income gets shifted into rental income thus avoiding a lot of the 15.3% Self Employment tax. This seems a lot simpler than going the S-Corp route although I could make an S-Corp + pay rent to myself saving me even more taxes.
From what I read online, it seems legal. The beauty of this is that my income would not affect lending guidelines for mortgages since it just gets shifted into rental income.
Any thoughts?