View Single Post
  #7 (permalink)  
Old 09-22-2008, 06:37 PM
spag's Avatar
spag spag is offline
Newbie
 
Join Date: Sep 2008
Posts: 18
Thanks: 1
Thanked 1 Time in 1 Post
iTrader: (0)
Default Re: How do corp not pay taxes?

An S corp is very nice.

You take your income subtract your expenses(make some up also) and you get your net profit.
That amount goes to your individual tax return but doesn't get hit with SelfEmployment tax. a huge savings.

The one caveat however is that you should take a payroll from your Scorp in the amount of about %25 of your net profit. This should keep the IRS off your back.
Reply With Quote