Full Version: Quickbooks payroll question

From: Dave Jones (DAVERJ) [#10]
 14 Jul 2006
To: Cody (BOBTNAILER) [#6] 15 Jul 2006

As a sole proprietor, the company is not a seperate entity. You are the company. The employees work for you. Everything sold by "the company" is your personal gross income and whatever is left after you deduct what you can is then your net taxable income.

With a corporation you and the others all work for the corporation. You can be paid like the rest and if anything is left at the end of the year then the corporation pays taxes on that.

The rules of what is deductable are very different for a sole proprietor than they are for a corporation. There are a lot of things that you might feel you should be able to deduct that in reality you can't deduct as a sole proprietorship.

It sounds like you really need to talk to an accountant ASAP.

---

From: Engravin' Dave (DATAKES) [#11]
 14 Jul 2006
To: Dave Jones (DAVERJ) [#10] 15 Jul 2006

Most smaller businesses would set themselves up as an S corporation, rather than a C corporation, avoiding the corporate tax you are referring to. An S corpration would allow you the same limitations on personal liability, plus, if you are in the early stages of your business development and you have some losses, the S corporation structure will allow losses to be passed through to yourself, the shareholder, allowing you to use this loss to offset other income you may have had on your return.

EDITED: 14 Jul 2006 by DATAKES

---

From: UCONN Dave & Lynn too (DANDL48) [#12]
 15 Jul 2006
To: Engravin' Dave (DATAKES) [#11] 15 Jul 2006

David, Also as a Corporation you don't have to pay Social Security on dividends, at least as a Sub S corp. ' Dave

---

From: bobkat [#13]
 15 Jul 2006
To: ALL

An LLC will give you the protections and advantages of a corporation with lower cost and less continuing paperwork for the government. In my state, you can set up an LLC yourself, online, in about 20 min. for a cost of $130.00. You then have a $25.00 per year renewal fee, and that is all the paperwork there is to do, (no meetings, no minutes, no charter, no board of directors, blah, blah, blah......).

---

From: Engravin' Dave (DATAKES) [#14]
 15 Jul 2006
To: UCONN Dave & Lynn too (DANDL48) [#12] 15 Jul 2006

Shhhhhh! There may be a politician lurking among us.

EDITED: 15 Jul 2006 by DATAKES

---

Show messages: All  1-9  10-14

Back to thread list | Login

© 2024 Project Beehive Forum