Originally Posted by FLM2
Make up whatever scenario you like to satisfy your own internal need to feel like you are right but I never implied anything about a C Corp or anything else. I simply stated my choice, gave reasons for that choice, and suggested the OP consult with a professional.
If you want to give the OP advice in an area where you are not qualified by license or education that is your choice, do you do the same thing for your clients when they ask for tax advice?
I'm not giving advice. Advice would be telling him to choose one over the other, or to set up a 401k or not set one up. Im not telling the OP what to do. I am sharing facts about business entities and retirement plan contribution regs.
I stated FACTS about 401k contribution regs (they are the same for all 3 of the commonly used entities)
. Facts are facts.
I gave my OPINION about the pros/cons of the various types of business entities and how they affect an insurance agent or small business owner.
The OP asked for reasons to use one entity over another. You shared one of your reasons for choosing a C-corp. But that "reason" applies to all 3 main types of business entities. So it is not an issue that the OP needs to consider, as that "reason" is the same for all 3.
That's not tax advice, it's a fact about Retirement Plan Contribution Laws.