I believe you still have to file the tax returns which costs money.

I think your best bet Michael is an LLC. All you need to do is pay the
annual state company report fee ($100 in NH). Since you are a sole
proprietor your profit, or loss in this case, is claimed against your
personal tax return. No need to file two returns.

Duane

-----Original Message-----
From: Hatton Humphrey [mailto:[EMAIL PROTECTED]]
Sent: Wednesday, January 29, 2003 3:28 PM
To: CF-Community
Subject: Re: Business types?


I thought that if a business was a net loss you didn't have to pay taxes
on it.

Then again, I'm no tax specialist either.

Hatton

Michael Dinowitz wrote:

>OK, this is a sticky one.
>House of Fusion exists as a corporate entity (S corp) but its income is $0.
Its
>expenses are a lot more than the income and its existence is basically a
cash
>drain. The question is, what other corporate or non-corporate entities
exist
>that we can hold House of Fusion under without having to pay out corporate
>taxes?
>
>


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