business structure

[Alan Barnard]

A. Only Chapter C corporations are "double taxed" -- actually, triple or even more. They pay "income" taxes, stockholders pay capital gains, employees pay income tax, everyone pays sales taxes, etc. All from the same pool of corporate earnings. That's called "stupid, short-sighted politicians trying to kill the golden goose" or "crushingly taxing the general public but making it look like someone else is paying the bills."

B. Liability protection? Uh, see my previous post entitled "Protected? Maybe not ...."

C.  Using contract labor does NOT protect you against most liability issues or worker's comp, or payroll tax issues, etc., unless they are truly, truly, absolutely independent -- have their own businesses separate from yours, aren't under any obligation to accept or perform work, don't have their work scheduled by you, do not use your facilities or equipment to do the work, etc. It's a very, very fine line you have to walk to be an "independent contractor", especially if the majority of your income derives from one source, i.e., you. This is one of the areas the IRS most closely scrutinizes in business taxation. DAMHIK DAMMIT.

Alan Barnard
Salem, MO




Original message
From: "Marshall Gisondi" 
To: pianotech at ptg.org
Received: 3/20/2008 12:25:40 AM
Subject: business structure


Hi Everyone,
>From what I understand and have learned, I would think the double taxation found in corporations would be a negative feature.  Of course, if someone's business warrants incorporating then there's nothing one can do about double taxation.  Since I'm not in business at this time, training to better hone my skills of course, I don't have to worry about the legal structure at this time, but I think for me the LLC looks like the next step after being a sol  proprietor  The LLC looks like the best option for a small business because of it's protection against liability feature.  When it comes to employees, I'd use subcontracted help.  Well that's my two cents, whether sharp or flat, I don't know.  :-)  Have a great night
Marshall
ps. to our friend on here who wrote, "Just an Associate Member" in their signature line, no one is just a member, we're all members. Being members of the PTG is an honor hold your head up high and view "Associate" as a step toward the goal of being an RPT.  
 
 



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