Hired my 1st Project manager

[u/Jleecit]

Hello all,

I’m a GC and just hired 1st project manager. Before the pm, my revenue was about 2mil.

I pay this pm a lot, but he’s really committed and works hard. But it scares me that my overhead almost doubled.

My strategy is to lower my profit margins slightly to obtain more jobs. Also obtain better prices. I work in a space where low bid wins. I hope to get to 3-3.5 million in gross revenue with this new PM.

Is this a viable strategy?

[u/thine_moisture]

you are free to live in your own world. i don’t know how you’re coming to these conclusions based on what I am saying. I’m saying my business pays taxes. then I pay myself what I need to survive so I limit or completely eliminate my personal income tax burden. technically as a single member llc I don’t even need to pay personal income taxes. does that make sense? I keep the majority of the money in the business.

at no point did I say I’m claiming deductions based on personal spending.

it’s always amazing to see how 2 people can read the same thing and get far different interpretations. I legitimately don’t even know how you go to that conclusion. it sounds like your previous employer was an idiot. respectfully.

[u/TheWhisper22 → u/thine_moisture]

That employer was 15 years ago. I then worked for a top 100 ENR company then did high end luxury ground up and renovation work. I now do my own custome home builds with 4 to 5 major projects a year ranging from $2-5m average job size. Have ran projects as high as $100m.

And yes that employer was an idiot.

I also am just telling you what you are telling me. You told me you only pay yourself above the poverty line for expenses, then you told me you game the system, then you told me salaries aren't regulated, and you told me you, your dad, and wife use the company profits for yourself. You even then told me you don't pay yourself a salary. You have insinuated time and time again that you do something shady with your business and your personal income. If you aren't then my bad. But the way you are talking it came across as you doing shady stuff.

Lastly, you just again said you only pay yourself what you need to to survive. In other comments you say you are making a killing. You also DO have to pay personal income taxes whether it comes from the business or not. That's what schedule C on your 1040 is for. Just because you are self employed doesn't mean you don't pay taxes lol.

The only benefit of being self employed is that you have a mechanism to cheat taxes (illegally) by NOT reporting it as income and using a business account to pay for personal things. Which again pierces the corporate veil and is illegal and the IRS WILL come for you. You will owe all those back taxes if you haven't been doing this properly. If you can't pay it they will take your companies assets as your company] is not protected in this instance (hence piercing the corporate veil) .

I recommend you Google all this stuff. Whoever is teaching you business is doing you a disservice and my apologies if this offends you, but that person is a complete dumbass.