Only pay yourself a nominal salary of $1 a year to avoid the taxation penalties. Have the corporation pay the cost of the lease for your car, rental space for your office in your home, your health insurance, day care, tuition, business meals, cell phone, DSL, equipment and software purchases, etc. Use Quickbooks extensively to record all income and receipts, and see how far it gets you.
M -----Original Message----- From: Dana Tierney [mailto:[EMAIL PROTECTED] Sent: Monday, June 16, 2003 10:39 AM To: CF-Community Subject: Re: Home Business was(RE: Microsoft ActionPack Subscription (with cou pon....)) There are very few benefits to incorporation for a small business. First of all the corporate veil does you little good. Then (unless this changed under Bush) all income from the business will be taxed twice, once at the corporate level, then again as income to you. One advantage is that you can go public and sell shares. I would say chapter S all the way. On how to handle business income, even small, you need to file -- hmmm I think it is a schedule C? not in front of me -- and a 1040. Definitely a schedule SE for the additional social security tax. All of this assumes that your business made a profit. HTH Dana On Mon, 16 Jun 2003 10:06:49 -0400, Candace Cottrell <[EMAIL PROTECTED]> wrote: > I was wondering about this as well. > I do some sites on the side, but just add the $$ ( a very small amt) > to my gross income. I emailed the IRS and they didnt give me too > definitive an answer. > > Candace K. Cottrell, Web Developer The Children's Medical Center One > Children's Plaza Dayton, OH 45404 937-641-4293 > http://www.childrensdayton.org > > [EMAIL PROTECTED] > >>>> [EMAIL PROTECTED] 6/16/2003 9:54:08 AM >>> > I have been operating my side/contracting business as Terminal-Fusion > for several years now, but never actually went the legal route. > Always just > tack what ever I make on to the top of my base income come taxt time. > > What are the benifits of becoming incorperated? > > Tim > >> -----Original Message----- >> From: Raymond Camden [SMTP:[EMAIL PROTECTED] Sent: Monday, >> June 16, 2003 9:54 AM >> To: CF-Community >> Subject: RE: Home Business was(RE: Microsoft ActionPack > Subscription >> (with cou pon....)) >> >> > I am wondering, did any of you ever take the time to set up > an >> actual company? How difficult is it? I was thinking sub > chapter >> s? >> > >> >> I thought I _had_ to. I just used my name as my business (same thing > I >> did when I bought a computer via Dell using their Small Business >> prices). I should have named my company Vandelay Industries. ;) >> >> -ray >> >> > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Archives: http://www.houseoffusion.com/cf_lists/index.cfm?forumid=5 Subscription: http://www.houseoffusion.com/cf_lists/index.cfm?method=subscribe&forumid=5 Your ad could be here. Monies from ads go to support these lists and provide more resources for the community. http://www.fusionauthority.com/ads.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
