Matt Aimonetti wrote: > Your taxes will not depend on what state your LLC or S-Corp is in, since > both are "pass-through" vehicles, and just hand the income to you to pay > taxes on. Shopping among states for better tax treatment is for larger > corporations. > > I don't believe that's exactly correct when it comes to an S-Corp. I > don't deal with that part of our business, so don't quote me on that, > but when I filed my personal tax, I only paid income tax on my income. > (what I gave myself as a salary) The rest is dealt at the business level.
No, it's exactly correct, though you did admit you didn't actually know. S-Corps don't directly pay taxes (or receive refunds). The gains or losses are passed through to shareholders individual taxes, reported via a Schedule K. And to verify what someone said earlier.. basing your corporation outside of CA won't save you any money, unless you intend on breaking the law by not also registering with (and paying!) CA. With a corporation, you WILL pay CA $800/year, and San Diego (don't remember, about $50/year). I couldn't tell you how this money is used. In case it hasn't been said enough, avoid employees. That's a huge mess! -- Stephen Waits [email protected] WAR IS PEACE | BIG BROTHER FREEDOM IS SLAVERY | 1984 IGNORANCE IS STRENGTH | George Orwell --~--~---------~--~----~------------~-------~--~----~ SD Ruby mailing list [email protected] http://groups.google.com/group/sdruby -~----------~----~----~----~------~----~------~--~---
