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I'm a single, 22 year old computer professional with no dependants. I am currently employed with a salary of 74K. I only spend approxiatemly half of my income. I was wondering if a starting a dummy company would help shield some income from taxes. Perhaps the corporation could pay the entire salary out in dividends. If it were an S corp, it may result in a capital gains tax instead of income tax. Is this correct? Any other considerations or ideas?
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[[I'm a single, 22 year old computer professional with no dependants. I am currently employed with a
salary of 74K. I only spend approxiatemly half of my income. I was wondering if a starting a
dummy company would help shield some income from taxes. Perhaps the corporation could pay
the entire salary out in dividends. If it were an S corp, it may result in a capital gains tax instead of
income tax. Is this correct? Any other considerations or ideas?]]

There are a number of issues that could be considered here. All very complicated and time consuming issues. I would suggest that you march on down to your local bookstore and check out some of the books on these issues.

You'll find that you are getting into a very complicated area here. And you don't want to venture into this area without the assistance of a qualified tax pro.

You really want to make sure that what you are doin is tax avoidance (which is legal), and not tax evasion (which could put you in the grey-bar hotel).

TMF Taxes
Roy
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