I'm currently a W-2 employee making over $150k a year and I already pay plenty of income tax even though I live in a state that doesn't have an income tax. I have a profit share with my company. The company is being sold and part of the sale agreement is a buyout of my profit share. The buyout is worth $500k and will be paid out over a 2 year period in addition to my salary. I will continue to work in my current capacity and the buyout is guaranteed even if they decide to let me go after the sale.
Is there any way I can avoid giving half of the buyout to the IRS? Should I be looking into forming a corporation and having the buyout paid towards it?
I'm quite clueless when it comes to these things. Any advice is appreciated.