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Originally Posted by Davevjr
what I am saying is if you are one guy or two even behind your computer at home you should not be a corpoaration. pension plan & profitsharing ok cool. but I am basicly saying is a person who forms a corporation and uses affialiate marketing as his biz is not doing himself a favor tax wise. Now I am just speaking tax wise not about other benefits. A sole proprietor he would taxed on personal income tax, as an s corp you also taxed on your personal income tax. but have the added issue of an annual franchise tax unless your corp is in nevada. if you company is sued it is true that if your personal assets will not be touchable provided you done nothing illegal. pension and profit sharing plans are avialable to all business, they are not corporate benefits.
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WRONG! It's even BETTER if it's just 2 people in the company.
If you open a Profit Sharing Plan, the company has to put in the same amount for EACH employee. If it's just my wife & I, we can load up the plan with any extra money we have & not pay taxes on it. Almost ALL of my profit goes into this fund.
Plus you throw in that at the end of the year, my company's books show a balance of $0.00, all I pay is the fee for filing the taxes ($100)
Plus, just think of all the benefits of filling out forms & applications & putting down that you have a job, an employer, you have check stubs & W2's.
I can remember how funny the loan officer looked at me when I told him I was self employed & then had to drag in all this paperwork & statements & proof of income.
"Proof of income? Here's my last 4 check stubs, Mr Loan Officer."
I've done both - it's much better with the company.