I'm trying to come up with some ideas for a TP and SP to avoid a reduction of their SSA Benefits (early retirement).
Facts
1. TP expects to have $50k in self employment income in 2022 as a sole proprietor. (Spec House Builder LLC)
2. SP has her own sole prop but barely breaks even most years.
Options I've come up with:
1. Spec House Builder LLC becomes a TP/SP partnership. (TN - not community property)
2. Spec House Builder LLC becomes a C Corp, TP/SP are paid $19k each plus health benefits and other benefits to make $0 net income.
What else am I missing? SEP doesn't reduce income for the SS earnings test, correct?
Unfortunately, a $30k tax planning fee was not palatable.