alexandr
Apprentice
Joined: 18 Jun 2006
Posts: 2
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 Posted: 02/20/08 - 05:06 Post subject: |
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| I have recently been planning to start a small business. I have heard that there are a lot of options with ways the taxes are being paid. Also, I have heard that if I choose S corporation, I would have greater benefits and save a lot of money. However, I am a complete beginner, so if anyone could help me, that would be great. |
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saunderson
Apprentice
Joined: 26 Jan 2006
Posts: 1
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| Posted: 03/21/08 - 03:42 Post subject: |
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Story about taxes in US is so complicated that you need several experts to be sure just how not to be liable to IRS penalties. I will try to simplify as much as I can. S corporation is a type of a small business company. It is good because you pay less taxes on your profits and the profit stays with the shareholders. It is the most popular type of small business in US precisely because of the less tax. Also, it would not be wise to have the majority of your money, or your savings in your corporation, but somewhere else. That is because there are cases when, if someone sues your company, the price you will have to pay will be only in companys assets, not your personal. So, it is better that you do not mix the two (assets being your home, pension fund, savings, etc.). Find some more information at http://www.skipmcgrath.com/articles/
incorporate-ebay-business.shtml. The guy talks about the e-bay business, but the principles are the same. Best of luck. |
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