<<I'm a slave at a large corporation, having a 401(k) at work, and a modest pension plan for my old age.>>It could be worse, I guess...<<As a complete fool, I have salted away $2000 per year in a IRA account and then I rolled them all to a ROTH IRA last year. Ouch! I still have to pay taxes on these capital gain for three more years. And it is so nice, that the IRS sent me a reminder right before Christmas. What a cheerful gift.>>Nobody forced you to make the conversion, eh? Please don't claim victim status here. <<Being a slave, I always work and work. So beside my main job, I also have a small business on the side, sole proprietorship, earning anout 16 to 20 grants a year. There is no other employee, just myself. My Big Questions are:1. Can I set up a Simple IRA from this part time business? As long as the business reports net income for the year?>>For 2000? Yes. For 1999 no. Too late. But you can establish a SEP plan for your business for 1999.<<2. Should I incorporate this business as a Limited Libilities Corporation for tax and liabilities purpopse?>>That's simply impossible to say without knowing much more about your issues and situation. What do you think that a corporation or LLC will give you that you don't already have in your Schedule C business? For these types of decisions, it is very likely that you'll need the help of a qualified tax or financial pro. TMF TaxesRoy
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