Savvy Salary for lower SDE Business
July 09, 2024
by a searcher from Texas A&M University in Irving, TX, USA

Needing to make about 80k stretch as far as it can, for my family of 5, from a smaller SDE business I am about to buy.
Key question: would it be better to treat this business as a 'project' for a separate management company (mine to set up to invoice management services for the operator role to the target business) to expense that 80k further (milage expenses, meals, other expenses an owner may not be privy to?) instead of just a standard 75k salary with another 8k of taxes surrounding that?
Context:
- Hope would be to grow enough to hire a local GM & not have me full time on site - ethically does seem like a project from a holding co vs standard W2 operator of a business'
- I am estimating about 2 years of this 80k - profits should increase
- Business would be about 100 miles round trip - as w2 it would be "commuter miles" & not deductible? so this alone could be roughly 12k of tax-free expense over the year
- I am leaving corporate with nice benefits and higher salary - so I want to be as savvy as possible with this smaller amount coming from the business as I set sail
- I tend to overthink or try to overly squeeze savings in my life - please feel free to tell me to stop worrying about this and just grow the business haha
Thank you all in advance!
from Texas A&M University in Irving, TX, USA
from University of Denver in Boston, MA, USA
I bought a smallish business right after having our 3rd kid and my wife having non paid maternity leave. So I know the gamble you're taking but it doesn't always work. Happy to chat on a call if you DM me.