Separate business/personal accounts?

[William R. Monroe]

Hi JR,

I'm curious what some of the ways to take money from the corp. without
paying taxes are.  I have incorporated as well - S Corp, and I pay myself
salary (taxable) as well as take a dividend (no employment related taxes).
What other areas might I be overlooking?

Thanks for any info - or links to pertinent (read: easily understood) info.

thanks for any help,

Respectfully,
William R. Monroe


----- Original Message ----- 
From: "J. R. White" <jrwhiteltd@msn.com>
To: "'Pianotech'" <pianotech@ptg.org>
Sent: Friday, January 06, 2006 4:06 PM
Subject: RE: Separate business/personal accounts?


A corporate structure - an "S" corporation - is cheap and easy.  And the
laws governing small "S" corporations reveal all sorts of ways to take money
out of the business without paying income taxes, all legal.  I operated as a
proprietorship for a long.  Then, I incorporated, a number of years ago, and
have wished I did it sooner.  It's simpler, truly a lot simpler.  Don't be
afraid to incorporate.

JRW

P.S.: It's a convenient estate planning vehicle, too!



  _____

From: pianotech-bounces@ptg.org [mailto:pianotech-bounces@ptg.org] On Behalf
Of Piannaman@aol.com
Sent: Tuesday, January 03, 2006 7:52 PM
To: pianotech@ptg.org
Subject: Re: Separate business/personal accounts?



Richard,



I've been using my personal checking account for business for the last 4
years and have had no problems.  I keep track of all expenses and income as
I go.  My business name is Dave Stahl Piano Service(my name is in the
business name), which, in CA at least, allows you to deposit business checks
into your personal account.



I'm to the point where I should probably worry about audits, and who sees my
accounts.  It's all pretty straightforward and simple as it is, though.  I
feel like a money funnel.  Money passes through me and into other
hands--IRS's and landlord's, mostly(BTW, can anybody explain to me what
"Service" they perform?...isn't it false advertising to call themselves a
"Service" if indeed they offer nothing for the money taken from those who
actually earn it?).  If I'm lucky, I can bank a bit and have some left over
for a vacation.



All money for estimated taxes goes temporarily into savings until the time
comes to write the dreaded quarterly check.



It's worked for me so far.  When my tax accountant suggests a change, I will
consider doing something else.



Dave Stahl



In a message dated 1/3/2006 8:58:07 A.M. Pacific Standard Time,
deanmay@pianorebuilders.com writes:

Hi Richard



By being self employed you place yourself in a category of being higher risk
for an audit. I've been audited twice. If you co-mingle the funds then they
will automatically be going through all of your personal records as well.



The fewer records they go through, the better, IMHO. Since having 2 audits
(none of which turned up anything significant and the second one they did go
through all of my personal records) I now pay as much as I can by cash for
personal expenses. None of their business so I am not keeping any records.
Every time you write a check, use a credit card, use a drug store/grocery
store discount card, make an ATM withdrawal, you are leaving a paper trail.
Don't kid yourself that you have nothing to hide. One of the things they
didn't like in my personal records was how much I gave to charity. Now
nobody knows.





Dave Stahl

Dave Stahl Piano Service
650-224-3560
http://dstahlpiano.net/ <http://www.dstahlpiano.net/>