
Originally Posted by
Melonie
Jon I was aware of the personal services corporation's 35% tax rate, but this of course applies to the corporations 'net' income for the current year ... after deducting the costs of the 'employer's' share of SSI tax, after deducting the cost of life and health insurance, after deducting the cost of 401k matching contributions and a host of other legitimate 'business expense' write-offs, as well as writing off the 'salary' paid to the 'director'. Thus while the 35% tax rate sounds high, in point of fact it only applies to a relatively small fraction of the corporation's actual gross earnings. Yes ? ~
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