Advice for side business with S-corp?

  • Thread starter Thread starter Chim
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Chim

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I have a side business that I'm looking at incorporating. It will not have any employees, only myself. I do not wish to draw any pay from the company, only gain revenue to reinvest later(most likely into real estate). What are some suggestions on how I should handle this tax wise?
 
You will be taxed; there is no way around this. Whomever does the S-Corp's returns will issue a form called a K-1 that indicates how much of the company's income is attributable to you as a material shareholder. Outside of tax exempt accounts such as 401(k)'s, IRA's, etc, all income gets reported and is taxable unless offset by deductions or losses.
 
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