7

To put this in perspective: you can certainly set up a corporation and then pass legitimate business expenses related to the operation of that corporation through it in the manner you're describing. Or take whatever other steps are needed in your specific jurisdiction in order to take advantage of tax breaks for legitimate business expenses. In a sense, that ...


4

You are certainly free to start a corporation and to try to get your current employer (or some other company) to hire the company as a contractor (you can't have a corporation as an employee). There are specific tests that the IRS requires to determine whether companies are employing independent contractors legitimately that you'd need to pass. That will, ...


1

If JOHN DOE uses the accrual method, he would claim interest income when the interest is due, just like the corporation. If that interest was never paid, he could then claim a "bad debt" loss at some point in the future (there is no IRS guideline for the actual timeline, only that you've attempted to collect and there's no reasonable expectation ...


1

Note, also, that what Amazon is doing to avoid paying taxes isn't going to work for you. When a company acquires another company they do so with pre-tax dollars. Amazon uses it's profits to buy up companies (notice how many it keeps eating!), this converts income into share price, they don't pay taxes, their investors only pay capital gains rates and only ...


1

In the US, to reduce your tax rate, you can create an LLC taxed as an S-Corp. You can structure your compensation in two ways: Salary. This is taxed at the normal rate. The key thing is that you must pay yourself a "reasonable" salary. You can't underpay yourself. Dividends. This is taxed at a lower rate and reduces your overall tax burden. ...


1

In the U.S., SEC Rule 504, as one possible method, allows the issue of unregistered stock to non-accredited investors. There's a $5 million limit effectively per 18 month time period. A notice of a stock-issue must be filed which is a Form D. However, each state can add limits and conditions and each state will likely require at least a Form D. Most states ...


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