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Posted on 11/10/14 at 9:36 pm to LSURussian
They'd better pay their taxes or their assets could be frozen.
This sounds like a Pond-zy scheme.
This sounds like a Pond-zy scheme.
This post was edited on 11/10/14 at 9:37 pm
Posted on 11/10/14 at 9:41 pm to deltaland
quote:it isn't the government's fault you are a complete idiot who can't handle his own finances.
Seriously frick the Government.
Posted on 11/10/14 at 9:46 pm to Ace Midnight
quote:corporations are people. They get taxed once. Their shareholders are also people. They also get taxed once. Two separate persons each being taxed once does not mean each is individually taxed twice.
- yes U.S. corporations are doubly taxed
This post was edited on 11/10/14 at 9:48 pm
Posted on 11/10/14 at 9:51 pm to I B Freeman
quote:
One of the biggest thing republicans and Obama could do now to help the economy is to allow domestic corporations to write their capital expenditures off like a cash basis farmer does.
Are most capital expenditure eligible for either 50 or 100 bonus depreciation these days anyway?
Posted on 11/10/14 at 9:54 pm to SpidermanTUba
quote:
Are most capital expenditure eligible for either 50 or 100 bonus depreciation these days anyway
Nope. As a matter of fact if Congress does not act before year end 179 depreciation will be limited to $25000.
Posted on 11/10/14 at 10:28 pm to soccerfüt
I've been catfish farming since I was 3 yrs old. I know what I'm doing... I know the kind of people you're talking about. They probably poured money into it and hired the biggest idiot crooks to run the farm. Happened to many a folk in this business.
Posted on 11/10/14 at 10:31 pm to soccerfüt
quote:
They'd better pay their taxes or their assets could be frozen. This sounds like a Pond-zy scheme
Wut?
I'm not behind on any taxes. We just formed the business we haven't even had cash flow. I owe nothing and there's no assets to freeze shite only thing I own is a truck in my name
Posted on 11/10/14 at 10:35 pm to SpidermanTUba
I'm not an idiot we have people managing the finances. I just noticed after looking at the tax structure of a c corp after we changed to it that it was taxed twice and I thought that sucks cause now they'll tax the profit and then tax my dividends. It sucks but I promise you the finances are being managed fine
Posted on 11/10/14 at 10:56 pm to deltaland
I mean, at least try Money Talk first.
Posted on 11/10/14 at 11:02 pm to deltaland
quote:
I'm not an idiot we have people managing the finances.
I'm just fricking with you.
quote:
I just noticed after looking at the tax structure of a c corp after we changed to it that it was taxed twice and I thought that sucks cause now they'll tax the profit and then tax my dividends. It sucks but I promise you the finances are being managed fine
Two things that make this not as bad as you think
a) Dividends are normally taxed at capital gains rates, which are lower than normal income tax.
LINK
b) If the corporation doesn't pay any dividends, but holds on to them instead, the value of your stock will go up by the amount of the dividend, but it isn't actually taxed on your end until you sell the stock - and then it is taxed at the lower capital gains rate.
If you take the top corporate tax rate of 35% and the top capital gains tax rate at 20% - that is a 1 - (1-0.35*(1-0.2) = effective rate of 48%. But again - that's only on dividends that are actually paid out to you in cash. My guess is the corporation will want to keep the dividends for the first several years until its well established - so you won't actually be paying this rate until many years from now.
I presume also you'll be receiving a salary from the company? That is deductible as an expense of the corporation. There are payroll taxes, but in the end net taxation prolly works out lower if profit is paid as salary rather than dividends.
This post was edited on 11/10/14 at 11:05 pm
Posted on 11/10/14 at 11:04 pm to deltaland
You shouldn't have to worry about income taxes until the business begins to generate profits. And if the initial capital is in the form of notes with warrants allowing conversion to equity, then you shouldn't have to worry too much about taxes or paying dividends to the investors. You will be paying them interest which is deductible which reduces the corporation's income subject to tax. And you shouldn't have to worry about dividends since the corporation will most likely be pouring all after tax earnings into expansion of the business operations.
So, I wouldn't worry too much about the taxes on dividends. I'd focus on making sure you get plenty of stock options as compensation while the business is expanding, and hopefully getting ready for an IPO. That is where the big payoff comes for the key players.
So, I wouldn't worry too much about the taxes on dividends. I'd focus on making sure you get plenty of stock options as compensation while the business is expanding, and hopefully getting ready for an IPO. That is where the big payoff comes for the key players.
Posted on 11/10/14 at 11:30 pm to SpidermanTUba
Yea we are going to work out those details in the next couple of weeks regarding dividend payouts.
I would hope they want to keep it within the company to grow the value of the shares, especially considering I can grow the company quickly by reinvesting the money and since it's a farm, write off all new equipment expenditures.
And yes I of course get a salary.
I appreciate y'all's input on this. I was just making a bitch at the government for it's tax rates thread, but it's turned into a productive discussion.
I would hope they want to keep it within the company to grow the value of the shares, especially considering I can grow the company quickly by reinvesting the money and since it's a farm, write off all new equipment expenditures.
And yes I of course get a salary.
I appreciate y'all's input on this. I was just making a bitch at the government for it's tax rates thread, but it's turned into a productive discussion.
Posted on 11/11/14 at 7:21 am to deltaland
Can I get in on that 30 mill a year profit ? I'll be a taster of your fish.
Posted on 11/11/14 at 7:25 am to deltaland
quote:Would be awesome if 10% of the threads worked out this way. Good luck.
I appreciate y'all's input on this. I was just making a bitch at the government for it's tax rates thread, but it's turned into a productive discussion.
Posted on 11/11/14 at 7:38 am to deltaland
Re-structure as an S Corp. Income flows through the corporation to the owner and is taxed the individual rate.
Posted on 11/11/14 at 7:54 am to deltaland
Curious if your investor is a family member, (I.e. Father)? From experience, banks don't lend that kind of money unless you have collateral. Maybe Dad co-signed? Private equity firms tend to find businesses to invest in or buy with solid EBITDA.
Posted on 11/11/14 at 8:43 am to deltaland
Dividends should not be taxed at all.
Delta land's point is valid.
I think we would not have the trillion dollars i cash sitting almost idle on the balance sheets of public C corps if the cash could be paid to shareholders tax free. (that and the idiotic idea that we should tax foreign earnings of US corporations should be eliminated.)
Delta land's point is valid.
I think we would not have the trillion dollars i cash sitting almost idle on the balance sheets of public C corps if the cash could be paid to shareholders tax free. (that and the idiotic idea that we should tax foreign earnings of US corporations should be eliminated.)
Posted on 11/11/14 at 9:12 am to MadDoggyStyle
No not a family member. It's not a bank loan it's an investment from an out of state angel investor group
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