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You can also establish your families medical and dependent care plan under your corporate entity, and it is tax deductible. Worried that you're not making enough money from your business to use these options. I'm not saying that forming a corporation is for everyone at first. You need to talk with a tax attorney who has experience with forming and managing corporations. Set your options according to size of your company.
Now, for cons of having a corporation. The one major con for small business owner is double taxation. The money that you allocate to yourself as salary is taxable at corporate rate. However, it is also taxed again when you declare this income on your personal income tax return. What you have to do is decide if pros associated with forming a corporation out weigh cons.
I have only scratched surface on subject of corporations. I advise you to start by reading following books:
Rich Dad, Poor Dad By: Robert Kiyosaki Cashflow Quadrant By: Robert Kiyosaki Multiple Streams of Income By: Robert G. Allen Loop-Holes of Rich By: Diane Kennedy, C.P.A.
You can purchase these books at discount rates at:
http://entertainmentmust.vstoremisc.com
or visit my web site listed below.
I hope this article got your attention. Now you have to do research. Read books I suggested, and talk to a good tax attorney with experience in forming corporations. If you have any questions, feel free to email me anytime.
Steven M. Strowder, Editor http://www.achieve-financial-freedom.com mailto:owner@achieve-financial-freedom.com Join my Free newsletter and receive my free ebook: mailto:subscribe@achieve-financial-freedom.com