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To: MEGoody

To start a business without a loan. If you create an S Corp for yourself. You then “sell” the corp stock to yourself in your IRA retirement account. This lets you self-fund your company without paying any taxes on a withdrawal from your retirement acct. As your business succeeds, the business then pays dividends to your IRA, (the business deducts it as an expense) and it is not taxed as income until you take it out of the IRA as a distribution.


67 posted on 09/20/2010 1:47:26 PM PDT by exblockhead (Split CA into 3 states.)
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To: exblockhead
This lets you self-fund your company without paying any taxes on a withdrawal from your retirement acct.

Which means I lose what little security I have in my retirement account. No thanks.

As your business succeeds. . .

That's a huge assumption, especially in the current economy.

68 posted on 09/20/2010 2:01:08 PM PDT by MEGoody (Ye shall know the truth, and the truth shall make you free.)
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