How does FICA cap work?
by cyan, Window Shopper
- Created: October 9, 2010, 12:28 pm
1) My wife and I are going to start a company, either LLC or S Corp. or LLC operated as S Corp. (not decided, yet). My wife already has a full time job with an annual salary over FICA cap. If my wife got paid as salary (not profit distribution and I understand that profit distribution only applies to S Corp., not LLC) from the company of our own, would she be required by law to pay FICA again on this portion?
2) Is it easy to change a company type from LLC to S Corp. or vice versa?
3) Is it easy to change the ownership of each owner and to add/reduce owner(s)? For example, my wife and I start a company as 50-50 ownership then change it to 10-90 next year. Can this be done? Is it easy to be done? I was told such a change can be very hard to do. In addition, can I add my daughter as an owner too at a later time?
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