Good news for us re: Obamacare/ACA

[sd'sker]

I am confident we would survive it but it could hurt our potential for growth.

i think it is safe to say that we are all concerned about growth in your private sector.

[StPaulHusker]

I am confident we would survive it but it could hurt our potential for growth.

i think it is safe to say that we are all concerned about growth in your private sector.

I see what you did there.

[sd'sker]

I see what you did there.

on a serious note (and because i do not know as much about corporations as i should), why did you choose to be an s-corp? were there other considerations? and if so, why not those?

[carlfense]

My main fear is that the government would look at me as a "wealthy" 2% or whatever and increase my taxes to a point that it would reduce the amount of capital I have to operate and grow my business. When in fact my salary/take home is considerably less.

You shouldn't be too worried if all that we're talking about is changes to marginal rates. The top bracket in 2013 only applied to dollars earned above $400,000.

[carlfense]

on a serious note (and because i do not know as much about corporations as i should), why did you choose to be an s-corp? were there other considerations? and if so, why not those?

My guesses:

1. Liability protection

2. Avoids taxation at both the corporate and individual level.

3. S is a much better letter than C. In fact, it's like a C and a backwards C stacked together. So, 100% better.

[sd'sker]

on a serious note (and because i do not know as much about corporations as i should), why did you choose to be an s-corp? were there other considerations? and if so, why not those?

My guesses:

1. Liability protection

2. Avoids taxation at both the corporate and individual level.

3. S is a much better letter than C. In fact, it's like a C and a backwards C stacked together. So, 100% better.

but why s-corp. over just an incorporation, llc, etc.?

[StPaulHusker]

I see what you did there.

on a serious note (and because i do not know as much about corporations as i should), why did you choose to be an s-corp? were there other considerations? and if so, why not those?

The main reason was avoiding paying the corporate tax. Everything is run through the owners. This way you don't pay personal AND corporate tax. It's all personal.

[StPaulHusker]

My main fear is that the government would look at me as a "wealthy" 2% or whatever and increase my taxes to a point that it would reduce the amount of capital I have to operate and grow my business. When in fact my salary/take home is considerably less.

You shouldn't be too worried if all that we're talking about is changes to marginal rates. The top bracket in 2013 only applied to dollars earned above $400,000.

 

And there lies the dilemma. Do you stay doing what you are doing and avoid that bracket or strive to hit it and end up paying more in taxes?

[carlfense]

on a serious note (and because i do not know as much about corporations as i should), why did you choose to be an s-corp? were there other considerations? and if so, why not those?

My guesses:

1. Liability protection

2. Avoids taxation at both the corporate and individual level.

3. S is a much better letter than C. In fact, it's like a C and a backwards C stacked together. So, 100% better.

but why s-corp. over just an incorporation, llc, etc.?

Not my area of expertise, but a traditional corporation would pay income taxes at the corporate level and then SPH would pay income taxes on whatever the corporation paid him as income. So, basically, double taxation. An s-corp provides similar benefits (from a liability standpoint) when compared to a traditional corporation but the profits are only taxed once.

 

We need a tax attorney in here to ridicule me about my overly simplistic understanding of the differences between the two.

[sd'sker]

that makes sense.

[tschu]

What people don't seem to grasp is that more money in the hands of the lower/middle classes is what makes an economy grow. Because these people spend money. On stuff. Making businesses more successful.

 

Raising taxes on the very rich shifts the balance of money back towards the middle class more. This money goes back to the middle class in the form of education, social services, roads, hospitals, funding for creating jobs at schools and police stations and libraries, etc etc. So yes, raising taxes on the upper class does in fact create jobs and lift the economy. The exact opposite of what the rich corporate-bought mainstream Republicans would have you believe. It's a big lie that they got lower-middle class, rural america to buy into somehow. And it's sad.

[carlfense]

My main fear is that the government would look at me as a "wealthy" 2% or whatever and increase my taxes to a point that it would reduce the amount of capital I have to operate and grow my business. When in fact my salary/take home is considerably less.

You shouldn't be too worried if all that we're talking about is changes to marginal rates. The top bracket in 2013 only applied to dollars earned above $400,000.

 

And there lies the dilemma. Do you stay doing what you are doing and avoid that bracket or strive to hit it and end up paying more in taxes?

You might end up paying more in taxes but you'll still have more take home. $400,001 in taxable income will still result in more take home pay than $399,999.

[tschu]

The REAL American thing to do, StPaul, is to set up an office and run all of your earnings through a P.O box in the Cayman Islands. Boom, now you don't have to pay any taxes whatsoever. #corporatelife

[tschu]

You might end up paying more in taxes but you'll still have more take home. $400,001 in taxable income will still result in more take home pay than $399,999.

This brings up another point, which is that it's hilarious how many people don't know how tax bracket work. Some people legitimately think they're better off earning less so that they don't go up a tax bracket. THATS NOT HOW IT WORKS. (not referring to you st paul)

[StPaulHusker]

The REAL American thing to do, StPaul, is to set up an office and run all of your earnings through a P.O box in the Cayman Islands. Boom, now you don't have to pay any taxes whatsoever. #corporatelife

Hmmmm. I think I need to call a board meeting.