Hiding Income

To clarify: I meant to have my employer pay my company directly.

>>1756473
Don't corporations pay a huge flat tax on all profit?

>>1756473
If you are in the US, you'd pay a higher corporate income tax rate than if you took that as personal income.

Maybe an S-corp is a better solution.

And the car and house will be compensation to you for the portion not used for business purposes.

>>1756491
Do corps pay tax on all revenue or only net profit?

Also, I'd basically be refunded all my personal tax dollars by the government because my income is so low, right? Would that not balance it out?

>>1756486
C corporations profits are taxed twice, would prefer to try and create a s-corp instead or a llc, but i'd suggest you talk to a lawyer or an accountant, to see what fits you the best

>>1756473
How about you just don't report your dick sucking side-hussle? Doesn't that make up most of your income?

>>1756473
With a C-Corp, your corp pays taxes, then you pay taxes on any money your corp pays you. They created the S-Corp to avoid that exact double-taxation.

I'm a consulting software arch/eng and have an S-Corp. I pay myself $102k/year in wages and the rest is corporate pass-through income (which the Donald wants to tax at 15%, fuck yes - would cut my tax liability in half). Last year this came to about $80k, but that doesn't include all of the expenses and retirement contributions I benefit from.

You *must* pay yourself a realistic wage for what you do. The IRS began cracking down on S-Corps years ago due to people paying themselves almost nothing but having six digit corporate profits.

Even if the corp owns the vehicle, you still must pay for personal use, which is why it's easier to do it the other way around - you expense vehicle usage for work. Easiest way to do that is to expense mileage driven at the standard rate.

You get a ton of write-offs for expenses - deduct home expenses based on the percentage of use dedicated to your business. Cell phones and their plans, computer hardware, software, office supplies, ISP, etc.

One of the best perks is a self-employed retirement plan. I have a solo 401(k) (self directed) that I dump $42,500/year into pre-tax.

S-Corp's have additional regulatory bs you have to deal with - you have to have an annual shareholders meeting. Any major decisions requires a board of directors meeting to approve. Not a huge deal just a minor inconvenience. You could look into forming an LLC that is taxed like an S-Corp (didn't know that existed when I formed mine 10 years ago).

>>1756916
thanks for the advice, man, this is exactly what I was looking for

>>1756916
is there any way I could bounce some more questions off of you? You can find me at 4chanbizburner at gmail dot com

>>1757044
No emails IRS man - I'll monitor this thread. What do you want to know?

>>1757083
I want to know how many dicks you suck to be the massive faggot you are. Just what exactly was so wrong with your fat retard mother's ovaries that she ended up conceiving someone as disgusting as you?

>>1757173
what part of China are you from

>>1756916
Why not convert the S corp into an LLC? I'm pretty sure your state will let you do that... if not, move it to a state that will (Wyoming/Nevada)

>>1756916
CPA here. Why the fuck are you paying yourself $102K? You could easily half that and eliminate 50% of your self employment tax liability and the IRS would not even blink. The reasonable wage takes into account industry averages, other wages within the company, and the net profit of the S corp.

>>1757319
He's better off just forming a new entity, filing an 8832 to elect S corp status, and calling it a day.

>>1756473
You can't just use corporate monies to fund your personal expenses. Any assets or expenses incurred outside of a business purpose not only penetrates the corporate veil, you are likely to get the assets and expenses reclassified as constructive dividends which are taxable.

For example, if you are a software developer who decides to form a C corp, and you buy a lake house for the summer and try to put that on your balance sheet, if caught it will 100% be reclassified as a dividend. If you make a shareholder loan with no amortization schedule, no formal contract, no interest, etc, and try to keep it perpetually on your balance sheet, it will be 100% reclassified.

>>1757319
I already have everything set up the way I want it. Filing a few extra pieces of paper a year isn't hassle enough to change anything at this point. Initially, though, it would have saved me much hassle.

>>1757331
I pay myself a reasonable wage for my job. I could probably get away with less but I'd rather not attract the attention of the IRS. As it is, I pay myself wages that are about 40% of my earnings/revenue. $102k is easily defensible.

The retirement account contribution cap is also based on wages. I defer $18k from my paychecks, then my company contributions can be as high as 25% of my wages (102k/4 = 25,500), which lands me at my annual retirement contribution of $43,500. I was actually going to increase my wages last year to hit the max allowed of $53k or so (and save an extra $1k/year) but then Trump was elected and if S-Corps pass-through income gets taxed at a lower corporate tax rate, it's more advantageous to keep my wages lower.

>>1757173
That projection, wow.

File: 1451927009875.gif (1MB, 292x323px) Image search: [Google]

1MB, 292x323px

>>1757044
>4chanbizburner

>>1756473

This idea is posted often. If you employed by a company good luck convincing them to pay you as a c corp.

It's tax fraud nigga, and they ain't gonna be on board with that.