How to protect your income ?
ALIENBERNHARD
subscriber Posts: 1
WHAT company form would be the best to protect any generated income from future possible claims ?
C-Corporation:
says, that it is a separate and distinct legal entity.
What means, what ever profit the C-Corporation would make, it's the profit of the company - but not mine, right ?
For instance:
Let's say the C-Corporation's annual corporate income would be $100k - I have to pay the Federal and State Income Taxes for the Corporation, right ?
And also, can I leave all profit within the company ?
Or do I have to pay the profit to my shareholders ?
My goal is clear. I want to make sure that my personal income get's down to the bare minimum.
Curious if that would work or not.
LLC:
Since an LLC has a pass through taxation, I am assuming that any profit would automatically count as my personal income.
Which I want to avoid - if possible.
I have personal reasons why I want to minimize my annual income.
Just looking for possible answers, what's feasible and legal practical doable.
Thx for any hints, ideas, and infos !
I really appreciate that !
C-Corporation:
says, that it is a separate and distinct legal entity.
What means, what ever profit the C-Corporation would make, it's the profit of the company - but not mine, right ?
For instance:
Let's say the C-Corporation's annual corporate income would be $100k - I have to pay the Federal and State Income Taxes for the Corporation, right ?
And also, can I leave all profit within the company ?
Or do I have to pay the profit to my shareholders ?
My goal is clear. I want to make sure that my personal income get's down to the bare minimum.
Curious if that would work or not.
LLC:
Since an LLC has a pass through taxation, I am assuming that any profit would automatically count as my personal income.
Which I want to avoid - if possible.
I have personal reasons why I want to minimize my annual income.
Just looking for possible answers, what's feasible and legal practical doable.
Thx for any hints, ideas, and infos !
I really appreciate that !
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