Newbie Here, Have a Question........

[LGSShaun]

I've been researching the benefits of incorporating as opposed to working solely as a DBA and I have a question. According to the article below business profits aren't taxed, only salaries. If I give myself a "salary" per year am I unable to touch the rest of the income that is classified as "business profits"?

This is a very cool site by the way!

[radreality]

people ask these questions on there all the time. When you are talking about stuff like this you aren't only dealing with the IRS, you are also dealing with the specific laws in your state, and its different for every state.

profits are taxed no matter what. The only thing that a certain type of entity changes is how they can be taxed. A corporation gives you more options for "getting paid" while at the same time reducing the amount of taxes you pay, if done correctly.

Although, its illegal to form a corporation strictly for this reason of reducing taxes. This is where a lot of amateurs screw up because they think they know what they are doing and they don't take care of all the proper legal paperwork associated with running a legitimate corporation.

Even though an attorney and a cpa might seem like they cost a lot of money, you'll get some of the best advice and knowledge you could ever receive.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

[LGSShaun]

people ask these questions on there all the time. When you are talking about stuff like this you aren't only dealing with the IRS, you are also dealing with the specific laws in your state, and its different for every state.

profits are taxed no matter what. The only thing that a certain type of entity changes is how they can be taxed. A corporation gives you more options for "getting paid" while at the same time reducing the amount of taxes you pay, if done correctly.

Although, its illegal to form a corporation strictly for this reason of reducing taxes. This is where a lot of amateurs screw up because they think they know what they are doing and they don't take care of all the proper legal paperwork associated with running a legitimate corporation.

Even though an attorney and a cpa might seem like they cost a lot of money, you'll get some of the best advice and knowledge you could ever receive.

Consulting both are in my plans if in fact I choose to go that way. Since it's Friday and contacting either at this time for general questions would be impossible I figured I would ask on here. Thank you for the advice though

[radreality]

Consulting both are in my plans if in fact I choose to go that way.

good, glad to hear it. Some people just try to escape those expenses, but they eventually pay for it one way or another.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum