[maryz]

True and that “rich” category has to do with the tax code and who they say is “rich” regardless of whether the money is actually paid to the small business owner or not.Many of us take out only enough to get by so we can plow everything back into the business.

I apologize in advance for my ignorance --:( -- but I do recall reading that if a small business is organized as an S Corporation, the owner's reported income is misleading. If this is indeed the case, someone should explain it. Or maybe I misunderstood . . . all too possible . . .

[Morgan in Denver]

Someone will correct me if I’m wrong but I’ll try. A Sub S Corporation provides the protections against law suits, as a regular C Corporation. However, the income from a Sub S passes through to the owner as regular income and taxed as personal income. If the person is a C Corporation, he or she would have to pay both corporate taxes and personal taxes.

[rodguy911]

I wish I could explain it. Only one of the many reason I have a huge CPA bill every month.