Shocking news! Firms without taxable profits don't pay income taxes!

http://www.scsuscholars.com/2008/08/shocking-news-firms-without-taxable.html ^

[LetsRok]

"I am a small business owner (Subchapter S) that pays no corporate income tax because 100% of the corporate earnings go to my personel return and is taxed at the hishest rate plus FICA. I read somewhere that over 70% of the corporations are subcapter S corps"

What are you talking about? I am a S-Corp and my "profits" flow through to my 1040 and are taxed as normal income. This is not at the highest rate. I try to have as little as possible being distributed to myself. I declare a high salary and pay all the taxes up front.

[buckalfa]

Good theory, but in some states like West Virginia there
is a thing called a business and occupation tax.

A business is taxed on its gross revenue rather than its
income after expenses. Of course WV is not really a state but rather it is a condition!

[dbacks]

[Losing that sort of money is simply creative accounting. ]

Corporations pay NO taxes, EVER. Their customers do! Learn it...live it...love it!

[Concho]

:)

I understand business quite well thank you. You are preaching to the choir, in case you didnt read my tagline.

[Concho]

I love it. I have been told that we cant keep this up forever, but as good as it feels I think I’ll keep it up till I need glasses.

It is all in how you structure, S-Corp, C-Corp or LLC, and just how good your accountant is. Definitions are everything. Everything is a business expense. Even the new guns and ammo are pest control. They then become a part of cost of goods sold.

Anyone who has an accountant that believes you should pay taxes needs to find a new one.

[Man50D]

Corporations never pay income taxes. They pass the cost of those taxes onto the consumer in the form of higher prices.