But, they're not getting unemployment taxes, and they loose 7.5% on social security taxes...
On Tue, Jun 8, 2010 at 12:29 PM, Jerry Richardson <jrichard...@aircloud.com> wrote: > Yeah but they get it through self employment taxes. > > -----Original Message----- > From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On > Behalf Of RickG > Sent: Tuesday, June 08, 2010 8:03 AM > To: WISPA General List > Subject: Re: [WISPA] legal entity type - was taxes > > Tom, > > I wanted to reply to this before I sent my last remarks. Rather than > employee, I've been a "subcontractor" to my corporation since it > began. These CPAs say that since I work in the company this is not a > good thing because the government doesnt get all its "due" through > payroll taxes. > > On Tue, Jun 8, 2010 at 12:56 AM, Tom DeReggi <wirelessn...@rapiddsl.net> > wrote: >>> Same subject, different question: Are you an employee of the corp? >> >> Good question. Again that depends. Depends on whether you are making money >> or investing in money. >> If you invest cash into a company, it usually makes sense to remove cash by >> paying back the investment, to avoid being double taxed on your own money, >> which would occur if you took payroll instead. If you are the sole owner of >> a S-Corp it becomes more forgiving, because at the end of the day anything >> you didn't take as salary, would tunnel to your personal income return >> anyways. >> But its really about what your tax braket and tax rate is for each entity, >> and monthly estimated tax payments would be. It about adjusting it so the >> least amount of tax paid upfront. >> If you haven't injected investment into the company, and company is making >> money, and you need money monthly to live, you may have no choice but to >> take payroll as an employee, so you can take money out when you need it, >> which is every month. Where as, if you live off another income source, you >> may not need to be an employee, and just take the income at end of the >> company tax year. It becomes mor complicated if multiple stock holders, as >> Employee payroll can be a method of defining fair compensation for time >> spent, before recognizing company profits. >> I personally am not an employee of my company, I am a stockholder. It much >> cleaner that way for my situation. >> However, I warn caution to others on that. If you anticipate needing credit >> for anything, so many credit things require proof of current historical >> monthly income. >> >> Tom DeReggi >> RapidDSL & Wireless, Inc >> IntAirNet- Fixed Wireless Broadband >> >> >> ----- Original Message ----- >> From: "RickG" <rgunder...@gmail.com> >> To: "WISPA General List" <wireless@wispa.org> >> Sent: Monday, June 07, 2010 11:04 PM >> Subject: Re: [WISPA] legal entity type - was taxes >> >> >> Same subject, different question: Are you an employee of the corp? >> >> On Mon, Jun 7, 2010 at 1:55 PM, Travis Johnson <t...@ida.net> wrote: >>> We are an S-corp and have been since the first day we started. It >>> provides personal protection against people suing you, etc. It also >>> allows expenses by the corporation that may or may not be allowed as a >>> sole proprietor (additional office locations, etc.). >>> >>> Again, you would need to check with your accountant. They are the only >>> ones that can give you exact information. >>> >>> Travis >>> Microserv >>> >>> RickG wrote: >>>> Its tempting to use a known CPA that is versed in our industry but >>>> I've had issues dealing with those out of state. With that said, I'm >>>> curious as to feedback on another issue. Who here is doing business as >>>> a "sole proprietor"? I've been an "S-Corp" for years but considering >>>> switching back due to its simplicity. This Corp stuff doesnt seem >>>> worth all the hassle. >>>> Thanks! >>>> >>>> On Fri, Jun 4, 2010 at 12:05 PM, Marlon K. Schafer <o...@odessaoffice.com> >>>> wrote: >>>> >>>>> I'm with Travis on this one. Sometimes we take the entire hit at once, >>>>> other times we spread it out. It kind of depends on what we need for >>>>> deductions and what the equipment is. >>>>> >>>>> Our accountant has taken a lot of time to learn this industry and is >>>>> really >>>>> good. The phone number is 509.982.2922 if anyone is looking for a good >>>>> one. >>>>> >>>>> laters, >>>>> marlon >>>>> >>>>> ----- Original Message ----- >>>>> From: "RickG" <rgunder...@gmail.com> >>>>> To: "WISPA General List" <wireless@wispa.org> >>>>> Sent: Thursday, June 03, 2010 11:55 AM >>>>> Subject: Re: [WISPA] taxes >>>>> >>>>> >>>>> >>>>>> Travis, thanks for your input. I'm really looking for feedback as to >>>>>> what our industry's standard is. I submit that the IRS does not look >>>>>> at it as a "personal, business choice". I'd rather do it correctly now >>>>>> than find out from the IRS I'm doing it wrong. >>>>>> >>>>>> On Thu, Jun 3, 2010 at 12:44 PM, Travis Johnson <t...@ida.net> wrote: >>>>>> >>>>>>> This is a personal, business choice. There is no set answer. Some of >>>>>>> our >>>>>>> equipment we expense and some we depreciate. It all depends on what >>>>>>> tax >>>>>>> breaks you need now vs. later. >>>>>>> >>>>>>> Travis >>>>>>> Microserv >>>>>>> >>>>>>> >>>>>>> RickG wrote: >>>>>>> >>>>>>>> Everyone's favorite subject :) >>>>>>>> >>>>>>>> I'm getting mixed information form my accountants on this and want to >>>>>>>> know what everyone else is doing. The basic question is this: Are you >>>>>>>> expensing or depreciating the equipment? Equipment being radios (AP & >>>>>>>> CPE), antennas, switches, firewalls, etc. >>>>>>>> With the cost of the electronics being so low, its not making much >>>>>>>> sense to depreciate. Which takes me to a second question: Have any >>>>>>>> WISPs been audited by the IRS for this reason? >>>>>>>> >>>>>>>> Thanks in advance! -RickG >>>>>>>> >>>>>>>> >>>>>>>> -------------------------------------------------------------------------------- >>>>>>>> WISPA Wants You! Join today! >>>>>>>> http://signup.wispa.org/ >>>>>>>> -------------------------------------------------------------------------------- >>>>>>>> >>>>>>>> WISPA Wireless List: wireless@wispa.org >>>>>>>> >>>>>>>> Subscribe/Unsubscribe: >>>>>>>> http://lists.wispa.org/mailman/listinfo/wireless >>>>>>>> >>>>>>>> Archives: http://lists.wispa.org/pipermail/wireless/ >>>>>>>> >>>>>>>> >>>>>>>> >>>>>>> -------------------------------------------------------------------------------- >>>>>>> WISPA Wants You! Join today! >>>>>>> http://signup.wispa.org/ >>>>>>> -------------------------------------------------------------------------------- >>>>>>> >>>>>>> WISPA Wireless List: wireless@wispa.org >>>>>>> >>>>>>> Subscribe/Unsubscribe: >>>>>>> http://lists.wispa.org/mailman/listinfo/wireless >>>>>>> >>>>>>> Archives: http://lists.wispa.org/pipermail/wireless/ >>>>>>> >>>>>>> >>>>>> -------------------------------------------------------------------------------- >>>>>> WISPA Wants You! Join today! >>>>>> http://signup.wispa.org/ >>>>>> -------------------------------------------------------------------------------- >>>>>> >>>>>> WISPA Wireless List: wireless@wispa.org >>>>>> >>>>>> Subscribe/Unsubscribe: >>>>>> http://lists.wispa.org/mailman/listinfo/wireless >>>>>> >>>>>> Archives: http://lists.wispa.org/pipermail/wireless/ >>>>>> >>>>> >>>>> -------------------------------------------------------------------------------- >>>>> WISPA Wants You! Join today! >>>>> http://signup.wispa.org/ >>>>> -------------------------------------------------------------------------------- >>>>> >>>>> WISPA Wireless List: wireless@wispa.org >>>>> >>>>> Subscribe/Unsubscribe: >>>>> http://lists.wispa.org/mailman/listinfo/wireless >>>>> >>>>> Archives: http://lists.wispa.org/pipermail/wireless/ >>>>> >>>>> >>>> >>>> >>>> -------------------------------------------------------------------------------- >>>> WISPA Wants You! Join today! >>>> http://signup.wispa.org/ >>>> -------------------------------------------------------------------------------- >>>> >>>> WISPA Wireless List: wireless@wispa.org >>>> >>>> Subscribe/Unsubscribe: >>>> http://lists.wispa.org/mailman/listinfo/wireless >>>> >>>> Archives: http://lists.wispa.org/pipermail/wireless/ >>>> >>>> >>> >>> >>> -------------------------------------------------------------------------------- >>> WISPA Wants You! Join today! >>> http://signup.wispa.org/ >>> -------------------------------------------------------------------------------- >>> >>> WISPA Wireless List: wireless@wispa.org >>> >>> Subscribe/Unsubscribe: >>> http://lists.wispa.org/mailman/listinfo/wireless >>> >>> Archives: http://lists.wispa.org/pipermail/wireless/ >>> >> >> >> -------------------------------------------------------------------------------- >> WISPA Wants You! Join today! >> http://signup.wispa.org/ >> -------------------------------------------------------------------------------- >> >> WISPA Wireless List: wireless@wispa.org >> >> Subscribe/Unsubscribe: >> http://lists.wispa.org/mailman/listinfo/wireless >> >> Archives: http://lists.wispa.org/pipermail/wireless/ >> >> >> >> -------------------------------------------------------------------------------- >> WISPA Wants You! Join today! >> http://signup.wispa.org/ >> -------------------------------------------------------------------------------- >> >> WISPA Wireless List: wireless@wispa.org >> >> Subscribe/Unsubscribe: >> http://lists.wispa.org/mailman/listinfo/wireless >> >> Archives: http://lists.wispa.org/pipermail/wireless/ >> > > > -------------------------------------------------------------------------------- > WISPA Wants You! Join today! > http://signup.wispa.org/ > -------------------------------------------------------------------------------- > > WISPA Wireless List: wireless@wispa.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ > > > -------------------------------------------------------------------------------- > WISPA Wants You! Join today! > http://signup.wispa.org/ > -------------------------------------------------------------------------------- > > WISPA Wireless List: wireless@wispa.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ > -------------------------------------------------------------------------------- WISPA Wants You! 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