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[quote=Anonymous][quote=Anonymous]You only take 150k from your small business. Im assuming that’s bc you continue to grow it. Is it profitable? Can you sell it at retirement for good money? [/quote]
NP.

I have an LLC, just me and my spouse.  We contribute the max to our 401k Individual as the employer and employee.  We've been doing that for *years*, and managed to save $2mil+. We are in our 50s.  Our business income is usually between $350K to $400K.

After self employment taxes, 401k contribution, and other business expenses, our actual income, not including income tax, is closer to $180K.  We are able to contribute to our kids' college accounts and cover our expenses with that income without a problem.

Op's issue is that you have 4 kids. We have 2.

Unfortunately, when filling out FAFSA for college, you have to report business income, and FAFSA will no longer look at how many kids are in college at the same time.   That will hit you hard.

I don't know what your actual business income is, but you or your spouse may need to find a "regular" job to pay for health insurance, which is expensive to pay as a small business owner (I know because we have it), and to contribute to a retirement account.

There are pros and cons to being a small business owner, but paying the self employment tax, your own health insurance, not having paid time off, and not having the employer retirement contribution are big cons.

The US actually doesn't make being a small business owner that easy financially.  If you hit it big, it's great. If not, it's a struggle.[/quote]

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