Timeline for S-Corp partnership startup. How to pay owners with minimal profit?
Current License: CC BY-SA 3.0
9 events
| when toggle format | what | by | license | comment | |
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| Oct 23, 2015 at 16:25 | comment | added | user32479 | I deleted my answer and all comments here. I don't agree with your answer, but I also don't care to engage on this topic anymore since it was clearly not heading a direction productive to anyone. | |
| Oct 22, 2015 at 19:02 | comment | added | littleadv | @Brick obviously, and I wrote it in my answer. | |
| Oct 22, 2015 at 16:54 | history | edited | littleadv | CC BY-SA 3.0 |
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| Oct 22, 2015 at 16:53 | comment | added | littleadv | @Brick because it is irrelevant in this case. There are books written about that, but in the case of the OP its just irrelevant, and will only confuse him. Trying to achieve "tax advantage" in this situation will lead to those penalties because it cannot be done. | |
| Oct 22, 2015 at 5:27 | comment | added | littleadv | @Brick there are several people on this site, who routinely, like you, promote tax evasion. This is not because they're right, but because they believe, as you do, that mere establishing S-Corp should miraculously make you pay less taxes. Obviously, this is incorrect, and obviously people are frustrated by that and express their frustration by routinely downvoting my explanations on the matter. Unfortunately for them, since these are not Congress votes, it doesn't actually change the IRC. And the IRC has no "60/40" rule in it, despite your desperate attempts to claim otherwise. | |
| Oct 22, 2015 at 5:23 | comment | added | littleadv | @Brick no, there's no difference in tax. You can keep your salary on the company bank account as well, it really doesn't matter. | |
| Oct 22, 2015 at 5:22 | comment | added | littleadv | @Jay as I said - you're only required to do that to the extent of the corp income, but yes - the law does require that. | |
| Oct 22, 2015 at 4:54 | comment | added | Jay | I'm not familiar with S corporations. How can the law require you to pay yourself a "reasonable" salary? New start-ups often make little or no profit for years. Where would the money come from? | |
| Oct 22, 2015 at 2:21 | history | answered | littleadv | CC BY-SA 3.0 |