You need a badass accountant/tax guy at this point. And you may just need to suck it up and pay up, honestly you just make a lot of money so you'll pay a lot in taxes. C'est la vie. It might be easier to sleep at night if you haven't implemented a bunch of shady tax avoidance strategies. Or if you really hate the taxman, maybe not.
We have a great accountant. He is changing firms and will be a partner at the new firm in 3-5 years. I have referred a lot of clients to him and that has helped with his career. So I get some special treatment ;-)
Yeah...I'm not into cutting corners on taxes. Everything we do is kosher and we are running out of ways to reduce things. The only thing that will really help going forward is extra passive losses through depreciation (paper) expenses, which will require a lot of cash relative to the benefit it provides. Thus we're trying to maximize after-tax income instead of minimizing taxes.
I personally would not worry about it much. Effective 25% is nothing when you're making that kind of scratch. Sounds like the business is doing even better than you thought as of a few weeks ago, congrats!
-W
The business is doing well. We found more builders that can bring in our dates and thus some more product should sell in 2015.
Since taxes are my largest expense it definitely makes sense to spend a lot of time trying to optimize them instead of other small expenses right now.
I am really more interested in comments related to whether or not I should re-characterize 401(k) dollars into traditional accounts instead of Roth accounts to save on taxes and if there are any clever ways to get more money in tax-deferred accounts. The drag from taxes will increase in future years most likely. Thus it may make sense to pay a bit more tax this year and sock away $106k in the SoloK accounts anyway, even though it will increase taxes a bit in this tax year.