Full Version: Quickbooks payroll question
From: Engravin' Dave (DATAKES) [#11]
14 Jul 2006
To: Dave Jones (DAVERJ) [#10] 15 Jul 2006
quote:
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.
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
From: bobkat [#13]
15 Jul 2006
To: ALL
From: Engravin' Dave (DATAKES) [#14]
15 Jul 2006
To: UCONN Dave & Lynn too (DANDL48) [#12] 15 Jul 2006
quote:
Also as a Corporation you don't have to pay Social Security on dividends, at least as a Sub S corp.
Shhhhhh! There may be a politician lurking among us.
EDITED: 15 Jul 2006 by DATAKES