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Corporation Vs Self Employed


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#1 deuce23

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Posted 15 December 2006 - 09:32 PM

I heard that it's better to open a business as a corporation rather than as self employed because opening your business as a corporation you can pay less in taxes because in the end you can use the gross profit as your salary to pay yourself as an employee to the corporation rather than being taxed on the net income if you were set up as self employed. Does anyone know if that's true?
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#2 BlackSpyder

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Posted 15 December 2006 - 11:07 PM

http://www.fourmilab.ch/ustax/ustax.html

Heres the US tax code. (I assumed you were from the US).
If you cant quite figure the code out yourself I would suggest hiring a CPA to help you do this (if you do it before the end of the year its a tax deduction)

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#3 boopme

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Posted 15 December 2006 - 11:38 PM

There are a few tax advantages to going INC. And there are several options to consider as to which structure you will use.
But more important than taxes are liability.
A tip FORGET Sole Proprietorship. Main reason in todays world: all personal and business liabilities are combined, and the business is not considered to be a separate entity. That means if someone dissatisfied they'll be suing you for all your hard earned assets.
Decide on a Corporation,S corp or my fave LLC ..Limited Liability Company
More on types
FreeAdvice.com

You'll need to do a little research as to your state laws

Some more info
http://www.irs.gov/businesses/small/articl...d=99336,00.html
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#4 Walkman

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Posted 16 December 2006 - 02:31 AM

I really didn't want to reply to this post, but.. here goes....

1. If you're a sole proprietor of your business, I'd research on the Corp registration/filing.
2. Unless you're a US Government employee OR a corporation, there is nothing in the (over 7,000 page) IRS manual that says that an individual has to file or pay taxes.

At this very moment, which you can find here on the Internet, is a REWARD at the cash value of $400,000.00 for any and everyone in the US to find in the IRS manual that shows the law that the average American citizen MUST pay and (or) file taxes. I will post the sites and you can challenge them for the money. I can assure you right now, you'll NEVER in the current IRS manual find a law that says that you MUST pay/file taxes... It clearly says it in their own manual/code book that taxes are voluntary. But yet and still we get jailed for NOT complying to that FRAUD.

$400,000.00 right now as of December 16, 2006 and earlier is still up for grabs if it can be proven that an individual must pay taxes.

Ex IRS experts have thought they had easy money, when it was only up to $40,000.00, and they have learned the truth, after all those years on the IRS payroll........... extorting money from people,,,, illegally, and even having them put in prison.

I urge any and all of you to NOT go to the IRS official web site to know your tax rights.

To make a long story short, the IRS was created illegally along with the Federal Reserve System, and 9 people went to a place, not too far off from New York called Jeckyl Island. It's a real place. They went there on The Christmas holiday when Congress was in recess.... they concocted up the tax scheme, and when Christmas was over, and the New Year came in, there was the Federal Reserve and then the IRS.

They passed it through Congress illegally, and to this day, you all think that the IRS and the Federal Reserve is legit, and from the US Government. Our Government allowed this to happen, and they planned on it too.

My point again, do your research on your tax rights, and do NOT go to the IRS's web site to know your rights. They are going to tell you what you MUST do to keep them off your back. They are tricking you.

Lastly, when you file a 1040 form, you are actually waiving your rights to self-prosecution. The US Constitution's 5t Ammendment rights protects you from self-prosecution. That's why people say in court "I plead the 5th". That's exactly what it's for. To protect you. They are saying that they are not going to say ANYTHING, because it can be used against them. It's very wise to know your rights and your constitutional rights too.

Even before Ronald Regan passed he made an announcement as the President that the US taxation had become unconstitutional. There you go.... someone that knew the truth, and died with it.

Please forgive me BleepingComputer, but this was something I'd rather not even seen posted here. And since it was, I'm telling what I do know about taxes. i'm simply ..... replying.

Do you all remember when our money was backed by either a silver or gold by certificate? The certificate is the "greenback" we hold everyday, but now it has no values to it. Right now, as of July or so of this year (2006), the dollar bill has the value of approximately $0.04. They took off our guarantee from the greenback and now we get less than what we put out. Everyone that saves greenbacks would be probably millionaires or close to it by now.... if they continued to back the Americans money with the GOLD/SILVER that is supposed to be still in Fort Knox. That gold and silver isn't there, and that's because the US Government sold us out to 2 NON governmental entities, that you all believe is an official entity of the US Governmental branch.

Wake Up Everyone!!!..... smell the stench in the air. You're all deceived in the lies that are put in front of you, because the statistics prove that the average person WILL believe whatever their government tells them. And guess what,,, this info comes from the government themselves. They know how dumbed-downed we are, and they are banking that we will NEVER stick together. Their analysis prove that we won't.

$400,000.00 are up for grabs. And you don't have to prove it to me. Prove it to all those organizations wanting to pay out this money.... ONLY if you can just show it in the law,, that paying taxes is the law for the average American worker.

Judges can't even agree. Some say it's the law, some say it isn't. Just like Sherry Jackson said (ex IRS Fraud Investigator)...... "Show Me The Law"

I'll post the links to these sites that are offering the reward money, and see if you will get it. Judges tried, and failed, lawyers tried it and failed, ex IRS and even current ones tried and failed. Accountants from all over the US tried and failed. No one can show the law. No one. And I mean NO ONE !

Protect yourself.. and investigate the tax laws, because you are more than likely waiving your rights when you file your taxes.

Did you know that on the news here this year(2006) that they said that more than 50% less people filed taxes in 2005 according to Census (another fraud organization). I wonder why? People are waking up. People are standing up, and people are taking back the government that they entrusted to help and protect them.


This will have to be on another thread/topic......... and I don't want the impression I hijacked this topic, because I didn't. I'm just informing people on what I know many people are afraid to talk about and admit. I'm not scared... are you?

#5 deuce23

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Posted 17 December 2006 - 12:12 AM

Thanks!
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#6 Grinler

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Posted 17 December 2006 - 08:50 AM

Walkman,

I get the feeling that you are into a lot of conspiracy theories?

It states here in Title 26, the internal revenue code of the United States of America, that individuals must pay taxes. It also states the percentage:

http://www.law.cornell.edu/uscode/html/usc...01----000-.html

Who do I contact to get my 400gs?

#7 deuce23

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Posted 17 December 2006 - 10:09 PM

Walkman could be right that taxes aren't required by law, because I know in Australia that they're not required to pay taxes on income or property and even though they're making millions they can still get welfare. Makes me just want to move to Australia just to make easy money.
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#8 DSTM

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Posted 17 December 2006 - 11:45 PM

Walkman could be right that taxes aren't required by law, because I know in Australia that they're not required to pay taxes on income or property and even though they're making millions they can still get welfare. Makes me just want to move to Australia just to make easy money.

Everyone has to pay taxes over a mininum income threshold.The companies can claim many costs and benefits that the ordinary worker can't.So in reallity they pay little or no taxes.There are fortunes to be made here,providing you have the right products or services,at the right time.And a little luck as well.LOL.

You are all welcome to come here and start a new life in our young beautiful country.
Come and visit,stay awhile and I'm sure you will love it. :thumbsup:

DSTM.















#9 Orange Blossom

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Posted 19 December 2006 - 12:40 AM

Did you know that on the news here this year(2006) that they said that more than 50% less people filed taxes in 2005 according to Census (another fraud organization). I wonder why?


I think the reason is far more likely to do with much higher unemployment and underemployment., but that is a different topic.
---------------------------
Re: the original topic. You can be self-employed and incorporated at the same time. Being incorporated separates your business income from your personal income and you can therefore protect your personal income. You DO NOT have to be a public business in order to be incorporated. An example is my former bosses. They are self-employed running a business as a corporation. They pay themselves salaries etc. However, they still are considered self-employed and fill out the self-employed tax form.

As self-employed: You pay 100% of your own social security taxes. If you work for someone else, your employer pays half, and you pay half. If you are self-employeed and have an employee: You pay all of your social security, half of your employee's social security, unemployment compensation taxes etc. Last I heard there were 7 different taxes that must be paid.

A major downside of being a PUBLIC corporation, which means that you have stock-holders, is that in today's climate if someone wants to buy you out, you are forced to sell. A lot of our corporations these days are very large holding companies draining the profits of the smaller companies they gobbled up, decreasing the quality of service and product and forcing bankruptcies. Henry Fields and Gurneys are two examples of old, very good companies that were forced to sell to a larger company and whose reputations have now gone down the drain.

So, by all means become incorporated if the money involved is large enough, but do NOT go public.

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#10 deuce23

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Posted 20 December 2006 - 01:53 AM

I thought unemployment was at a low.

But tax wise, which is better in terms of the amount of tax you would have to pay?
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#11 Grinler

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Posted 20 December 2006 - 10:27 AM

I am by no means a tax expert and I suggest that you contact an accountant or a lawyer to really get the information you need on this. Another site that is terrific is :

http://www.nolo.com/

What I do know is that if you are self-employed you can write off a lot of work related expenses. This will help you with your taxes.

#12 Walkman

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Posted 20 December 2006 - 12:51 PM

Grinler,

I'll post the web sites today, when I compile my bookmarks from my other computers on this one.

I would imagine the term "conspiracy theory" has been used to diminish the pursuing of one's truth. There is no conspiracy theory here. It's the facts, and the truths.

The problem is that so many of you just believe whatever law was laid down in front of you, and you never even questioned. How do I know that?.... because it's obvious that many people just never read/investigated it themselves.

Besides what your accountant says, can any of you personally say that you can show the law that says you must pay taxes? Any of you? I have the IRS manual. It's not in there. And I do know some law. I planned on becoming a lawyer while I was in school, but life took me in another direction. But I have plenty of law books here, and I can tell you this much.... you don't have a clue as to your rights if you don't read and know them.

I've started a film/documentary (May 2006). I'm naming it when it's complete "100 reasons why you don't have to pay taxes". My goal is to go to 100 tax preparation places and inform them that I'm trying to win $400,000.00 by putting to rest the tax issue. Then I'm asking them to help me win this money by showing me in the law where it says that I must file and pay taxes. I've been to 32 tax places so far, and not one of them was able to show me the law. My goal is 100.

Did you know that in Alaska, they simply cut out taxes there?... and at the same time they have given the residents there money at tax time.

Before you think your state, or any state will suffer because of no taxes, do a search on either term:

CAFR or
Comprehensive Annual Financial Report (CAFR) ..... for your state, and you'll have full 100% access to the states financial reports and where monies went to, and what came in. And if you're a real accountant, you'll see that there is so much money in the "surplus = extra money", you'll soon see that there is no such thing as a deficit or budget. Those are two bogus terms the governmet uses to make you think that they have no money. A sate is NEVER in the red. Just look at the CAFR for your state and you'll see.

Note: Since this CAFR has been exposed some time back, each state is now watering down their actual financial reports. For my state, I have it for every year, starting since 1994. If you get to see yours, download starting from the earliest year possible and work your way upwards, and you'll probably see that your state is leaving out financial records for many of their transactions.

I'm willing to stake that 99% of you right now have never even heard of a Comprehensive Annual Financial Report. And that's because since it's the US Governments financial record keeping system, they don't want you to know. The news have never ever mentioned those words..... not ever, but the mainstream news gets a CAFR sent to them each year.

Call anyone, and I mean anyone you know as a governmental official, and watch how many of them tell you that they never even heard of it. Just watch. Some of them will be lying to you, and some of them really won't have a clue. I've asked a few of them myself, and as sure as night and day, they all told me that they never heard of it.

This all ties into taxes. And since there is the Internet and search engines, I don't see how anyone couldn't find the real truth, no matter what anyone says.

The truth is waiting. Are any of you going to go after it, or are you just going to go along with what has been a "tradition" to you all these years? At least seek the truth.

Lastly, ... anytime there is a conflict of law within the government, the US Constitution says there is no law. That clearly means that if one judge says it's a law, but another judge says it's not a law, .. then there is a conflict with the law within the government, and that clearly excludes that so-called law as a law.

Read and KNOW YOUR RIGHTS.

#13 Grinler

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Posted 20 December 2006 - 01:22 PM

Read my 1st post above. States clearly that we need to pay taxes.

#14 Grinler

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Posted 20 December 2006 - 01:32 PM

Or how about this:

http://www.constitution.org/afterte_.htm#amd16

#15 DSTM

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Posted 20 December 2006 - 01:56 PM

I can't believe some of what I'm reading here.If we don't pay our taxes,who is going to pay for all our our infrastructure?And all of the miriad of services which we use on a daily basis.Nothing comes for nothing.Does everybody want to pay tolls on every road we use,Pay police everytime we need one,etc etc etc.I am happy to pay my taxes if I can see a benefit to the community,and the tax system is not abused.In the early days of America they had toll houses on just about every road and bridge .My guess is if we stop paying taxes it would be like the wild west.Another thing,who pays for the military to protect us?I think some common sense should prevail here.
Getting back to the original question asked,If you have enough money to start a business,you should have enough money to pay for a tax experts advice in that area.Whether it be a one man operation,a company or whatever.

DSTM.


















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