Not wise to have 2 Sched Cs, due to self employement tax

You have to pay self employment (SE) tax on ALL sched C income, which is 15%.

With 1065, you can split income to passive and non-passive, and pay SE tax on non-passive income only.

The money you saved from SE tax will more than offset your accountant fee, if you have decent income.

Check with your accountant/CPA to make sure.

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• With Sched Cs, you will have a higher chance to be audited. -不开窍- ♂ (59 bytes) () 04/02/2009 postreply 08:37:39