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GWAE
GWAE 
Joined: Sep 20, 2013
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July 21st, 2017 at 6:59:05 AM permalink
Quote: beachbumbabs

I don't want to give you any advice or preference. But you should consider an S Corp before you decide on either an LLC or C Corp. It mostly fits between the two, and has some tax and administrative advantages in some situations.



Thank you, I will take a look at that as well.

I spoke with an accountant today and they do a free consultation, I didn't realize they would do it for free. I was expecting to pay a few hundred for that.

For those of you that have a business and use an accountant. Do you prefer large companies or the small "mom and pop" type places that may even work out of their house. The last business I had I used an accountant in downtown Pittsburgh in a big skyscraper. They did fine and I had no complaints but I can just image I was being charged more because of their overhead, but I could be wrong.
FleaStiff
FleaStiff
Joined: Oct 19, 2009
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July 21st, 2017 at 7:12:56 AM permalink
A corporation (whether subchapter S or not) and an LLC can be used as shields to protect personal assets from business creditors but remember, whatever election you make must be followed thru. You MUST keep an up to date set of books, you change hours, you hire a secretary, you change your salary or draw... it must all be memorialized on paper or your creditors can attack the corporate veil as a sham.

Be certain you CAN work from home, some people need a physical office for emotional reasons: the famous example is that guy who walked out his front door at five then came in, slammed it behind him and said 'Honey, I'm home".

Remember your disability insurance pays based on your SALARY, not your bonuses or draws.

Remember that hiring even ONE employee can land you in the clinker for thirty days if you do not have workman's comp, though most states are not that extreme. Usually you get three rejection letters and then go into a high risk pool. Varies state to state.

You will want to avoid your corporation paying income taxes and then distributing the income to you as a stockholder's divident on which you thenhave to pay taxes. However rates have changed and you will need up to date info.
boymimbo
boymimbo
Joined: Nov 12, 2009
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July 21st, 2017 at 7:38:37 AM permalink
There are reasons to setup a corporation:

(1) Tax deferrals
(2) Personal asset protection
(3) Ability to pay yourself perdiems and expenses "tax-free" (mileage allowances)

And drawbacks:

(1) Accounting and legal paperwork (Corporation setup fees, accounting fees, etc, board meetings, minutes, etc).
(2) Employer benefit expenses (Medicare and Social Security to the tune of 7.85% of your salary)
(3) Dual tax returns

Many consulting companies will not take you on without you being setup as a Corporation.
----- You want the truth! You can't handle the truth!
FleaStiff
FleaStiff
Joined: Oct 19, 2009
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July 21st, 2017 at 9:22:13 AM permalink
Quote: FleaStiff

Quote: FleaStiff
Everyone thinks terrorists have to be massive to win, they don't. These uneducated brainwashed teenage suicide bombers are effective, that is all that counts. Its like the Jewish Lobby... they are effective in American elections and don't have to have massive numbers, just enough to tip the scales.
And its not really religion. Most of the yacht hijacking dhows were Islamic but some of them were Jewish financed. The NSA traced the hijacking coordination and ransom negotiations to Jews not Arabs.
EndQuote.

Quote: BBB
I realize you read an enormous amount of stuff on a large range of topics, but I think you need to either back that up with credible cites or retract it.
EndQuote

Its a heat wave here and I can barely pump enough blood to cool myself much less stay alert and concentrate but I am indeed wading thru material on frankincense and myrrh (originally sourced to Punt now known at Puntland), as area of Somalia well known for hostage taking. Fading in and out of consciousness with this heat and my ticker doing constant battle, I would much rather be doing just about anything else but I do want everyone to know that I will eventually find the reference to NSA intercepts that traced the finances of one hijacking syndicate to Jews not Arabs.



Okay. I give up.

I have reviewed a total of five books that deal with Somalia, Piracy, Hawala, digital Hawala, Clans of Somalia and Puntland, Intelligence monitoring of financial transfers, etc. Yes, I have some "humint" that I might contact on this matter but I doubt they would be helpful and I do recall the statement about one of the piracy groups being Jewish as being in print. Its cooled off a bit but I'm still unable to pump sufficient blood to get properly cool. I used local library resourcss and also ILL resources. I'd like to finish a Hiassen mystery (Razor Girl), I also have some essays on small town life in Minnesota to read (Sinclair Upton). I've got feral cats to attend to and even though its a short walk its now a real drain on my strength. I give up.
onenickelmiracle
onenickelmiracle
Joined: Jan 26, 2012
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July 21st, 2017 at 9:22:48 AM permalink
I met a lady she said she was disabled getting social security disability. She claimed she invested $250,000 into her business, loans the money to herself at 11% interest, and pays herself $8/hour. I'm wondering if you could invest IP, claim it to be worth x, then when money comes in, loan it to yourself like she did. I believe Mitt Romney did this in a way when he was a single shareholder, he dumped millions into a Roth IRA by claiming his stock worthless when investing it, then like magic, boom he changed his mind.
Looks like sh!t just got imaginary!
TigerWu
TigerWu
Joined: May 23, 2016
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July 21st, 2017 at 9:32:50 AM permalink
Quote: onenickelmiracle

I met a lady she said she was disabled getting social security disability. She claimed she invested $250,000 into her business, loans the money to herself at 11% interest, and pays herself $8/hour. I'm wondering if you could invest IP, claim it to be worth x, then when money comes in, loan it to yourself like she did.



I don't understand how that works.... if you loan money to yourself, and charge yourself 11% interest, you still have to get that 11% interest from an outside source to pay yourself back. How is that an advantage? What does the $8/hr have to do with anything? I mean, what exactly is the "scam" that's going on here?
onenickelmiracle
onenickelmiracle
Joined: Jan 26, 2012
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July 21st, 2017 at 10:23:10 AM permalink
Quote: TigerWu

I don't understand how that works.... if you loan money to yourself, and charge yourself 11% interest, you still have to get that 11% interest from an outside source to pay yourself back. How is that an advantage? What does the $8/hr have to do with anything? I mean, what exactly is the "scam" that's going on here?

Beats me. Maybe she loaned the business the original $250,000 at 11%. I really don't fully understand her situation but I'm sure she is benefitting from it somehow.
Looks like sh!t just got imaginary!
GWAE
GWAE 
Joined: Sep 20, 2013
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July 21st, 2017 at 10:34:06 AM permalink
Quote: TigerWu

I don't understand how that works.... if you loan money to yourself, and charge yourself 11% interest, you still have to get that 11% interest from an outside source to pay yourself back. How is that an advantage? What does the $8/hr have to do with anything? I mean, what exactly is the "scam" that's going on here?



it sounds like she has a 250k which may screw her from medicaid and disability. So she made a "business" and gave the money to it. She makes $8 an hour which is poverty so she can now get stuff for free and disability. So she now gets all the free stuff but she still basically has 250k - the small amounts she is paying herself each month out of that money. Maybe the business is also making money, or maybe there really is no business and that is part of the sham.
GWAE
GWAE 
Joined: Sep 20, 2013
  • Threads: 66
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July 21st, 2017 at 10:40:36 AM permalink
Quote: boymimbo

There are reasons to setup a corporation:

(1) Tax deferrals
(2) Personal asset protection
(3) Ability to pay yourself perdiems and expenses "tax-free" (mileage allowances)

And drawbacks:

(1) Accounting and legal paperwork (Corporation setup fees, accounting fees, etc, board meetings, minutes, etc).
(2) Employer benefit expenses (Medicare and Social Security to the tune of 7.85% of your salary)
(3) Dual tax returns

Many consulting companies will not take you on without you being setup as a Corporation.



Thank you for the insight. Your number 3 of the corp reason is one of the appealing things as well. I don't think you can pay yourself a per diem unless you are outside a certain area from your business but I could be wrong. However you can have the business pay for "employee" lunches which would just be us 2 and of course paid miles and other expenses.



Quote: FleaStiff

A corporation (whether subchapter S or not) and an LLC can be used as shields to protect personal assets from business creditors but remember, whatever election you make must be followed thru. You MUST keep an up to date set of books, you change hours, you hire a secretary, you change your salary or draw... it must all be memorialized on paper or your creditors can attack the corporate veil as a sham.

Be certain you CAN work from home, some people need a physical office for emotional reasons: the famous example is that guy who walked out his front door at five then came in, slammed it behind him and said 'Honey, I'm home".

Remember your disability insurance pays based on your SALARY, not your bonuses or draws.

Remember that hiring even ONE employee can land you in the clinker for thirty days if you do not have workman's comp, though most states are not that extreme. Usually you get three rejection letters and then go into a high risk pool. Varies state to state.

You will want to avoid your corporation paying income taxes and then distributing the income to you as a stockholder's divident on which you thenhave to pay taxes. However rates have changed and you will need up to date info.



That is a very good point about working from home. In my head, I would be working in the basement. I have always said I could not work from home because of the distractions and such. I plan on talking to my wife tonight about this idea over dinner. When I talk about the home aspect I plan on bringing up a few points. Between x time and y time I am at work and should not be bothered other than the current way you bother me right now which is an occasional email. The kids are not allowed to be down there and the TV will be removed from the room. I also would remove the furniture and turn it into an actual office. I would probably even leave the house and enter from the downstairs door opposed to using the inside stairs to give me the feeling of leaving the house. The only part that she may have an issue with is me converting the basement into an actual office. Hopefully this business grows and I could actually get an office, that would obviously be good news for the business.
TigerWu
TigerWu
Joined: May 23, 2016
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July 21st, 2017 at 10:40:41 AM permalink
Quote: GWAE

it sounds like she has a 250k which may screw her from medicaid and disability. So she made a "business" and gave the money to it. She makes $8 an hour which is poverty so she can now get stuff for free and disability. So she now gets all the free stuff but she still basically has 250k - the small amounts she is paying herself each month out of that money. Maybe the business is also making money, or maybe there really is no business and that is part of the sham.



You would think someone clever enough to come up with a scheme like that and keep up with it consistently would be smart enough to actually have had a good paying job in the past making a lot more money than she's currently getting and making much more profitable investments.

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