?Tax Tips for your Internet Business? Business Articles | May 9 Cheap Jordan Retro , 2007
Did you know that the manner in which you structure your Internet business affects the business deductions you can take?? Learn the tax strategies available for S Corporations and C Corporations.
There are numerous ways to slash your taxes.? A savvy Internet business owner recognizes that these tax saving strategies can add up to thousands of dollars.
First, let?s take a look at two ways in which you can structure your Internet business.? S corporations and C Corporations and the tax tools you can use in each type of structure.
1.) S Corporations:
Have about 75 typical deductions.? If you are uneducated then you only have about 10 deductions available. December 31st year end.? Must do strategy before December 31st to take advantage of certain tax saving strategies. Flow through entity which means any gain or loss flows through to you.? For example, if you make $40 Cheap Air Jordan ,000 in a regular job and after paying for all your business expenses you have lost $10,000. You can apply this loss to the income from your regular job.
2.)? C Corporations
Have a choice of fiscal year end.? Don?t have to use December 31st. Have 300 deductions that you can use to your advantage. 15% tax on the first $50,000 of net income.
NOTE:? S corporation and sole proprietor have virtually the same deductions Cheap Jordan Shoes , but there are a few differences.
Be aware that if you use these tax strategies that you should:
1.) Audit-proof your record through the power of documentation.? ??Keep a tax log.? You will have to answer who, what, when Cheap Jordans , where and how much for each deduction.? This shifts the burden of proof off of you and on to the IRS.
2.)? Label each deduction as ?Reimbursement Due?.? Total up these deductions.? These deductions can be offset against any future or back taxes that you owe.? In other words, the IRS won?t write you a check, but instead cut your back taxes or future tax payments.
NOTE:? You can amend past returns as far back as 3-4 years.
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