Skull Pilot
Diamond Member
- Nov 17, 2007
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All, I am saying, and justly so said on your part... i may have confused your statements on these other posts, with the comments of others on this topic, is that although small businesses do take risks with opening a business, there are ways for you to protect everything you took out of this business of profit on your individual basis....
YOU WILL NOT lose your home or everything you made off of this business if you go belly up, not if you set your self up correctly to protect yourself with an S-corp as example...so when you say you risk everything of your own, I still don't see it that way....if you could expound on it further, I may understand better, what you are trying to say.
I have set up a corp, you know that. But what you don't seem to grasp is that the first 5 years of any business are perilous.
And do not presume to know what I or anyone would or would not lose if one's business failed. My home was bought with my business specifically in mind. We run our business from the majority of our home and my wife and I live in an apartment on the second floor. The business pays us rent that pays our mortgage. We owe vendors and have leases that our personal finances are shielded from but what about all of our personal money that we sunk into the business.?. All that investment did was increase our basis in the business. If the business fails, we will get none of it back.
.On the unemployment thing, as I have said before to you, if you pay yourself a salary, you too qualify for unemployment as your employees would, so i see no risk there either...unless of course you decided to avoid SS taxes and U/E fees for yourself by taking your cut of the business only as profits, avoiding these other taxes...
You assume that my salary IS the entirety of my income. You would be wrong.
If so, then the savings of only collecting profits and not collecting part of this money as salary and avoiding SS taxes.... should have allowed YOU to take this savings in tax money and put it away for the bad times you may have had to face down the road, like shutting the doors of your business.
You may be right 10 years from now but we are barely 2 years old.
As a business owner, your options are greater than the salaried person working a job, to avoid taxes or reduce your tax load. I see this as an advantage business owners deserve for employing others.
If I don't pay a salary that the IRS finds "appropriate" for my position, I get penalized. So don't think a business owner gets a pass there and can take the bulk of his income as non-salary. I do have additional income from profits above and beyond my salary but it is taxed the same way as an employee who works and gets dividends from stocks. So in that sense I have no advantage. The best I can do is have the business provide "other" income. For example, the business pays me to mow the lawn and plant flowers, but that "income" is also taxed.
And I do understand the less of their tax load, the better.
BUT THIS IS THE CASE, with EVERYONE....no?
And hasn't that been my argument all along? You allowed your class prejudices to blind you of that.
I want to be able to keep more of my taxable income for myself, just as you do....this is where YOU are no different than the next guy....
I don't think business owners are some elite class that deserve more of a tax break than the next guy on his own personal and individual income taxes just because he is investing money in to a venture that could make him rich, or break him....
Care
And I have said they are elite? I have said they deserve "more" of a break?