The Domestic International Sales Corporation (or DISC) was created by the U.S. Congress to encourage the export of U.S.-made goods through the tax law. Shareholders of a DISC receive reduced income tax rates on qualifying income from such exports. One of the nice features of a Roth IRA is that it can have an interest in a DISC and, as a result, reap some substantial … [Read more...]
Corporations
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How to audit-proof your S corporation salary
If you’re the owner of an S corporation, you can save a lot of money on self-employment taxes. How? By paying yourself a low salary and taking the remaining profits as distributions which are not subject to the self-employment tax. But as is often the case with the tax code, the devil is in the details. Which is why I urge you to read my must-read new article titled Tax … [Read more...]
Which retirement plan is right for you?
Don’t miss this first in a series of articles on retirement plans for small business owners. Regardless of the kind of business entity you’ve chosen, (proprietorship, LLC, S corporation, or C corporation), you need to read this important new issue titled Tax Tips: The Best Small-Business Retirement Plans: Part 1. Three ways our fact-filled article can help you: We’ll … [Read more...]
Get your independent contractor’s tax status right
Do you work with independent contractors? If you do, it’s vitally important to get their tax status right from day one. Why? Because if you get the contractor’s status wrong, and they are considered by the IRS to be “employees,” you could suffer major penalties. That’s why it’s so important to read my latest article titled Tax Tips: Tax Lawyer Is an Employee, Not an … [Read more...]
How to manage your S Corporation fringe benefit problem
It’s a fact. Your S Corporation may not give you the tax-free fringe benefits you want. In the good old days, the S Corporation avoided double taxation, reduced self-employment taxes, and also gave you a bunch of fringe benefits. Well, sadly, the good old days are long gone (since 1982). Which means that when the S Corporation is your 2011 business entity of choice, you have … [Read more...]