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Financial Planning / Tax Strategies


Subject:  Re: To incorporate or not Date:  11/10/1999  10:51 PM
Author:  mphipps Number:  20908 of 127616

*******What are the advantages and disadvantages of starting a corportation as regards to taxes, investments, and liability by the owner? ******
Here is what I think I know.
1. Advantage. YOu can take the maximum salary for Social Security benefits arounD 25000. And take the other in Dividends and not have to pay 15% social security tax.
2. Advantage. If you got into financial or other problems you could desolve the corportation tomorrow and start another one.
3. You could add you family to the payroll and do the dame as 1. above and generate more revenue.
3. YOu protect your personnel assets from certain legal actions or
4. YOu place your personnel assets in the corporation and protect them from estate taxes.
Cost alot to incorporate and keep the records. Other options are K-Corp or limited Liability Comp.

Can anyone recommend where to incorporate?
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