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How do corp not pay taxes?

Discussion in 'Business & Tax Advice' started by frenchboy, Sep 18, 2008.

  1. frenchboy

    frenchboy Jr. VIP Jr. VIP Premium Member

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    Im a noob.

    I dont understand how corp don't pay taxes. It make sense that if they lose money during the year instead of making profit they shouldn't pay taxes. But how does one make his company lose money while he makes a (big) profit?

    My little brain doesnt get it
     
  2. ximscreamingx

    ximscreamingx Power Member

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    They expense/invest their profits in other ventures so they show no net profit for the fiscal year,
     
  3. Black Hat Seo

    Black Hat Seo BANNED BANNED

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    Exactly, I should pay six figures a year in taxes by common definition, my tax attorney moves my money in a way that allows me to often pay less than $10,000 a year which is a massive savings.

    Never ever show a profit. It's better to throw all the money in an ad campaign and hope for the best at the end of the year than give it to to the government and get nothing.

    Get yourself a great business CPA and they will know what to do with your money.
     
  4. Bugalugs

    Bugalugs Regular Member

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    A corp buys everything for the company and pays taxes on whats left.

    An individual pays taxes on everything he earns and buys what he wants with whats left.

    Very large fundamental difference. Pays to be a corp !
     
  5. unitedcrown

    unitedcrown Junior Member

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    What kind of Corp S or C? The question was rather vague, as many corps pay taxes, and most S corps dont, the net income passes through to the shareholders

    If only it was that easy, no taxes would be paid. They actually borrow before they get profits so they don't have any profits.
     
  6. Freddie

    Freddie Registered Member

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    Multinational companies can do this by shifting profits to another (low tax) jurisdiction.
     
  7. Uptownbulker

    Uptownbulker BANNED BANNED

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    Hit me up via PM!

    Or:

    Skype:

    Sumanitutaka1

    AIM:

    anonymousincorp

    Uptownbulker AT gmail DOT com.

    I can help you!
     
  8. spag

    spag Newbie Premium Member

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    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.
     
  9. Twins2222

    Twins2222 Regular Member

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    My twin and I have an S type corp, you can get one set-up for about $550 or less depending on the what you need. Legal zoom dot com are top notch they get it done in about 7-10 business days. We had them do a C type a few years back but if you can afford the extra I recommend the S type.better overall options in the long run.
     
  10. Uptownbulker

    Uptownbulker BANNED BANNED

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    Yep; agreed except for one fact.......

    NO and I mean NO anonymity with such services and as you know, anonymity on the 'net can be very, very important!

    I do anonymity; Legal Zoom does not.
     
  11. paper_chase

    paper_chase Regular Member

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    They have so many heads under which to show inflated expenses...further they also deploy profits in further expansion and thus claim tax deduction...
     
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