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Realities of starting a business/corporation
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fucksong Offline
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Post: #1
Realities of starting a business/corporation
Okay, so my biz partner and me just went to see a CPA and payroll guy the other day as we both suck ass at doing taxes (personal, anybody can do that with Turbotax but with a business ,it's a whole other ballgame) My partner wants to claim all kinds of business deductions for him, his wife and his kids so is looking to shelter as much of his income as possible so was going to make his wife an employee. Well shit man, it aint that easy. Unless you're truly going to be a one man shop, just hiring a person, I mean legitimately hiring a person, not just like eLance, but paying somebody regularly is a big ass bitch to do. You have all kinds of compliance shit, HR notices to put up, medicare payments, payroll taxes, etc. Fuck, just getting a headache thinking about it. But if you don't have this shit order, your business can get fucked later down the road with the state.

Oh and get this, for the record, I'm def no Republican and when I was younger, I used to think Democrats were the ones looking out for us, but fuck me, now I know the reality. Did you know that many doctors are now going completely private because the way Obamacare is set up, it fucks up the system for doctors. My partner brought his kid to see a doctor that his wife likes but the doctor didn't accept his insurance because it wasn't a corporate PPO, it was a private one (that's why he asked me to accompany him to do all this shit) and the payroll guy was breaking it down to us how doctors don't like this system because in the past, they could get paid within 30 days but with government programs and non-corporate insurance programs, it takes a few months before they see a penny.

Now you might think who gives a fuck, I want insurance and brotha I feel you on that. But would any of you work even a single fucking hour and be okay to not get paid for 2-3 months, maybe longer? Yeah right. Try telling that to your dealer that you can get him back two months later on that twenty-sack and he'll laugh in your face so why would an educated doctor be any different. So what that means is all the best doctors aren't gonna be available for people because of the system. So basically Democrats are full of shit because they're just playing ppl without really knowing the details of the "system" and Republicans are also full of shit because they're just playing the other side. Okay, didn't mean to get all political but damn, when you learn something new about the "matrix" and are directly involved in it, it fucks with your head and overall worldview.

Now to end on a good note, why would anybody want to start a business/corporation? Well, imagine taking a trip to one of the poosy paradises that are well documented AND BEING ABLE TO DEDUCT THAT WHOLE TRIP AS AN EXPENSE? If you're an employee of whoever and make $10k, you're gonna get taxed and after tax take home would be, say, $6k, as an example. Well, if you earned $10k from a business, you still have to pay that $4k in taxes BUT IF YOU HAVE EXPENSES, that $4k goes down and in many cases, you can get it waaaay down for stuff you pay for anyways like rent, car.. shit I can write off lapdances as "meals and entertainment" if I bring a client to a strip club. Oh and to bring it back to the original point of this post, one of the best expenses to claim is payroll. But to get that payroll expense claimed, you also have all your other paperwork in order.

The CPA charges a g to two gs for tax services with the payroll guy charging $500 upfront with a $50 fee every month.
05-28-2015, 05:45 PM
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Shanked Offline
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Post: #2
RE: Realities of starting a business/corporation
My dads mate earns 80k -100k as a plumber but only declares 17k income. Hes always been a dodgy cunt but it shows there are ways to avoid tax especially if you get cash jobs.

As for paying someone else hire casual staff to begin with you dont need any of that.
05-28-2015, 11:47 PM
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Alex Offline
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Post: #3
RE: Realities of starting a business/corporation
It cost me £15 to incorporate as an LLC in the uk. Business bank account was free, agencies sort my jobs for me and take a small cut. Accountant costs I think £200 something every quarter? PLI and other insurance costs about £200 per year.

Unfortunately working for The Man I don't have much of a chance to skim cash off. However at my current post I just turn up and leave whenever I want and just dick around on the internet most of the day. As long as I hit my targets they don't care (I exceed them).

I charge 1200 a week inclusive of VAT. Pay a 9% VAT bill and a 20% corp tax (on prpfits) per annum. Accountant calculates my monthly salary and I'm left to send the gross into my personal account and the PAYE to the taxman.

E: I can only claim transport, accom, food as expenses. All expenses are as FS said discounted from my corp tax applicable earnings so I basically don't pay tax on my trains and hotels. But if I tried to claim a trip to Manila or something as expenses the taxman would demand proof I was there for business and have my ass.
(This post was last modified: 05-29-2015, 03:31 AM by Alex.)
05-29-2015, 03:27 AM
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scandibro Offline
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Post: #4
RE: Realities of starting a business/corporation
Running a business is damn hard work. And I'm not talking about one man shows or freelance consultance work. Hiring people and all the crap you need to report and keep track of is a serious hassle. Ive gained a lot of respect for the bean counter types who can keep everything organized. I am nothing like that, has made me realize I won't ever make it big self employed unless I partner with someone who is organized and managerial.
05-29-2015, 09:41 AM
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decentfilipina Offline
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Post: #5
RE: Realities of starting a business/corporation
Business have wide opportunities to avoid tax since they can hire competitive accountants. Tax avoidance is never illegal. This is the reason why the richer people are getting richer. Smile If you are a business owner and you don't know the A to Zs of your tax, you have limited options to fully enjoy the benefit of avoiding tax, not unless you can hire someone to do it for you.
05-30-2015, 02:18 AM
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wallyclar123 Offline
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Post: #6
RE: Realities of starting a business/corporation
I've been thinking starting a cleaning service business. Does anyone here have an idea on how to start and run and any suggestions how much it will cost?
11-02-2016, 10:15 PM
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