|
View previous topic
::
View next topic
|
| Author |
Message |
swt996
Joined:
10 Feb 2004
Posts:
39
|
Posted: Sun Mar 14, 2010 8:07 am
Post subject: Best Corporation Structure for Affiliate Marketing Business
|
 |
|
hi can anyone advise? i seriously dont want to pay so much in taxes
_________________
Last Minute Vacations Guide |
|
| Back to top |
    |
 |
InternetMarketingIQ
Joined:
04 Aug 2009
Posts:
436
Location:
United States of America
|
Posted: Sun Mar 14, 2010 9:07 pm
Post subject:
|
|
|
Only a Subchapter S Corporation will allow you to save on Tax.
And the tax you save on is the 15.3% social security tax. This applies for USA Corporations... different countries I do not know about.
S Corps are "pass through" entities. You assign yourself a salary and then you pay the FICA tax only on the Salary portion you pay yourself.
If you are not making more than 30K it's not worth setting up.
For example: Lets say you make $60K yearly. And you decide to pay yourself a salary of $1,000 a month.
You pay 15.3% of your 1,000 but the other 4,000 is exempt from the Social Security tax. That becomes a big deal as in this example you would save about $600 a month!
You do however pay Federal and State Income tax on all your Income.
So the real savings is Social Security. And when I say social security I really mean FICA and all the taxes incorporated within the 15.3%.
But the downside is you have to maintain a lot of additional paperwork and there are plenty of forms to fill out and file. And if you do not file them on time you will be penalized/fined.
Your best bet is to find a local accountant and make an appointment for a consult.
99% of all Fortune 500 companies incorporate in Nevada. And where you incorporate is very important.
Good luck.
_________________
|
|
| Back to top |
|
|
swt996
Joined:
10 Feb 2004
Posts:
39
|
Posted: Tue Mar 16, 2010 2:24 am
Post subject: thanks!
|
|
|
so it wont help if i were to set up an LLC instead then? by the way, i am not based in the US. i am considering this service offered by myuscompany.com
do u have an opinion on this? thanks so much again!
_________________
Last Minute Vacations Guide |
|
| Back to top |
|
|
InternetMarketingIQ
Joined:
04 Aug 2009
Posts:
436
Location:
United States of America
|
Posted: Tue Mar 16, 2010 7:13 pm
Post subject:
|
|
|
In USA LLC's pay Social Security tax on all net income.
Your best bet is to contact a local accountant. You don't save money by not knowing the law.
I paid less than a $1,000 to get everything set up... only half of that was Attorney Fee.
Corporations are pretty easy to set up. The hard part is keeping all the paperwork up to date and making sure you do not miss tax payment deadlines.
I wouldn't worry about Incorporating until you are pulling more than $30K yearly.
_________________
|
|
| Back to top |
|
|
moorking
Joined:
30 Oct 2009
Posts:
2
|
|
| Back to top |
|
|
swt996
Joined:
10 Feb 2004
Posts:
39
|
Posted: Wed Mar 17, 2010 7:31 am
Post subject: thanks!
|
|
|
thanks again for the advice! us30k is about right. 
_________________
Last Minute Vacations Guide |
|
| Back to top |
|
|
Morris Robin
Joined:
22 Feb 2010
Posts:
13
|
Posted: Thu Mar 18, 2010 9:41 am
Post subject: Best Corporation Structure for Affiliate Marketing Business
|
|
|
I am also in trouble for this taxes and no any possibility arise from my side. I also need help for this extra taxes.
Thanks,
Morris |
|
| Back to top |
|
|
JonMills
Joined:
02 Jul 2005
Posts:
156
|
Posted: Mon Mar 22, 2010 2:13 pm
Post subject:
|
|
|
When your starting out you really dont need to fork out for a corporation. In my mind corporations are overkill for this type of business.
I would advise sticking with a regular business and then rexamining how your business is doing after a year.
_________________
Affiliate Organizer Software - http://www.affiliateorganizer.com
The Affiliate Entrepreneur - Over 560 Pages, additional videos and custom bonuses ( 3 Live Examples!)
http://www.theaffiliateentrepreneur.com/ |
|
| Back to top |
|
|
| View previous topic :: View next topic |
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Private Messages
Log in
