Quote:
Originally Posted by bausch
Every accountant that I've seen has told me that it's not worth it to set up s-corp if you are making under 150k a year. Even if you're making low six figures, they claim that all the paper work etc is not worth saving a few extra thousands a year.
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You obviously haven't talked to many.
Here's a really simple scenario.
Let's say you make 100K. If you're a proprietor, you have to pay 12% social security tax on the entire 100K.
If you're an S corp or LLC (my company is both) then you can pay yourself a salary of say 30K, and take the other 70K as a dividend.
Now you're only paying social security tax on 30K, and not on the other 70K.
That's a savings of $8400/yr, just on that one thing.
You're either not being honest about having spoken to an accountant, or you talked to one who was an idiot.
If you don't like money, then just keep doing it the way you're doing it.
Quote:
Originally Posted by st0ned
That makes no sense. If the desk is used 100% for business purposes you can write off 100% of the cost.
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It makes sense if you understand the tax code.
You write off a portion when it's purchased, and then you claim depreciation over a period of time.
On the one hand you bought something for business use, on the other hand your business now owns an asset, so it's not like spending the money on electricity, or advertising.