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Shocking news! Firms without taxable profits don't pay income taxes!
http://www.scsuscholars.com/2008/08/shocking-news-firms-without-taxable.html ^
Posted on 08/13/2008 10:53:57 AM PDT by newbie2008
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To: small business owner
"I am a small business owner (Subchapter S) that pays no corporate income tax because 100% of the corporate earnings go to my personel return and is taxed at the hishest rate plus FICA. I read somewhere that over 70% of the corporations are subcapter S corps"
What are you talking about? I am a S-Corp and my "profits" flow through to my 1040 and are taxed as normal income. This is not at the highest rate. I try to have as little as possible being distributed to myself. I declare a high salary and pay all the taxes up front.
21
posted on
08/13/2008 11:48:07 AM PDT
by
LetsRok
To: DieHard the Hunter
Good theory, but in some states like West Virginia there
is a thing called a business and occupation tax.
A business is taxed on its gross revenue rather than its
income after expenses. Of course WV is not really a state but rather it is a condition!
22
posted on
08/13/2008 11:53:37 AM PDT
by
buckalfa
(confused and bewildered)
To: Concho
[Losing that sort of money is simply creative accounting. ]
Corporations pay NO taxes, EVER. Their customers do! Learn it...live it...love it!
23
posted on
08/13/2008 12:12:22 PM PDT
by
dbacks
(Should we really elect a man that would not be allowed to be an airport baggage screener?)
To: Mr. K
:)
I understand business quite well thank you. You are preaching to the choir, in case you didnt read my tagline.
24
posted on
08/13/2008 12:31:02 PM PDT
by
Concho
(IRS--Americas real terrorist organization.)
To: dbacks
I love it. I have been told that we cant keep this up forever, but as good as it feels I think I’ll keep it up till I need glasses.
It is all in how you structure, S-Corp, C-Corp or LLC, and just how good your accountant is. Definitions are everything. Everything is a business expense. Even the new guns and ammo are pest control. They then become a part of cost of goods sold.
Anyone who has an accountant that believes you should pay taxes needs to find a new one.
25
posted on
08/13/2008 12:43:51 PM PDT
by
Concho
(IRS--Americas real terrorist organization.)
To: newbie2008
Corporations never pay income taxes. They pass the cost of those taxes onto the consumer in the form of higher prices.
26
posted on
08/13/2008 7:39:59 PM PDT
by
Man50D
(Fair Tax, you earn it, you keep it!)
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