I'm part of a multi-partner LLC that's been in existence for several years but had the good fortune of seeing significant gains in revenue and profits in 2007. Expansion brought higher costs/expenses and I was wondering if any guidelines exist about % of revenue or profits should expenses be limited to in the field of finance and trading. Our known expenses are currently 10.5% of reported revenue (gross profits) to IRS and I think if we grill down and become more aggressive and tally up additional allowable expenses we could get
2-3% more, yet these are a lot of small items and hence a tedious imprecise process. Additionally, our dollar expenses went way up (about 6 fold) but our % of expenses went down from 2006 (margins went up) by 2%, could this be a problem or cause confusion? Thus is there any guideline to the % to expense before the remaining income is K-1'ed out?Thanks,
TraderT