Law Articles And Legal Issues

Tax Tips to Save Money on Taxes - Get the Corporate Kick and Save Loads of Money

Why a Corporation Helps Save You Taxes

The Tax Rates (Notice anything unusual?):

The following tables provide a list of the tax rates for individuals and corporations:

Personal:
$0-$24,650 15%
$24,651-$59,750 28%
$59, 750-$124,650 31%
$124,651-$271,050 36%
$271,050+ 39.6%

Tax Secrets

Corporate:
0-$50,000 15%
$50,001-$75,000 25%
$75,001-100,000 34%
$100,001-$335,000 39%
$335-000-$10M 34%

If you examine them closely, you will see at least one glaring contrast. The individual making $49,000 per year is in the 28% percent bracket, while a corporation that earns $49,000 is only in the 15% bracket. That¡¦s a potential 13% difference in your tax rate if you organize your finances to take advantage of this one little item.

But, that¡¦s just part of the story. An individual who makes $49,000 in salary pays taxes on almost the entire $49,000. However, a business can first deduct its operating expenses, and only pay taxes on what¡¦s left. As Robert Kiyosaki says ƒ± the corporation acts as a filter that is used to reduce the corporation¡¦s taxable income by utilizing the tax deductions afforded by the tax code.

Basic corporate deductions include telephone expenses, equipment (faxes, computers, photocopy machines, telephones), automobile gas, repairs and insurance, travel, entertainment, seminars, etc. Do you have any of these types of expenses? Sure you do!

The difference is that businesses subtract these first, then pay taxes on the balance. You, as an individual taxpayer, pay taxes on the greater amount, then pay for these expenses (you call them living expenses) out of what¡¦s left. Did you ever wonder why there¡¦s not much left for living at the end of the month? Now you can see why. The question is "Are you going to do something about it?"

Keep in mind that there are two steps here; first you must start to shift your efforts from earning a salary to earning more money through your business. There are many ways that you can do this.

For instance, you can start with your own business concept. Maybe you¡¦ve already got an idea that you want to pursue. It could be a product or a service or something along the lines of art and crafts. It doesn¡¦t have to be sophisticated or high tech; it just has to have a profit motive.

Secondly, you may have something that you already enjoy doing as a hobby. You can probably convert that activity into a viable business enterprise. Just remember that there are rules that you must follow to ensure that your new-found business is not treated as a hobby by the I.R.S, and the deductions voided.

Thirdly, you can get into a network marketing business. There are many available, some of which don¡¦t require a lot of money to get going. The older types of network marketing schemes available in the past made little money for anyone except the original promoters.

Today, Wave 3 network marketing companies offer legitimate profit potential and significant residual income streams. I will be happy to make a recommendation if you like. Lastly, you may be able to sell the services of your new company to your employer. Suppose for example that there is some aspect of your job that you think can be done less expensively or more efficiently on an out-sourced basis. Tax Strategies It could be anything really, clerical services, database management, sales or marketing. Instead of working overtime and on weekends to make more fully taxable income, your company could generate revenue by providing the ¡§outsourced¡¨ service to your employer, and, in doing so, you could take advantage of the tax benefits.

And the nice thing is that any of the above can be done on a part-time basis. You can maintain your current job (and income) while you grow your new business.

The next step is to learn to maximize your deductible expenses. The items listed above are only a few of the many deductions that are available. We will be going into more advanced topics later in this booklet.

One of the best ways to start this process is to review your current expenses and see if there is a way to convert these expenses to business expenses. Start with your checkbook; list all of the expenses that you pay each month on a piece of paper. Next, go through your credit card bills for the last year and list them. Next, go through your cash receipts and see where your cash was spent.

Now, having done that, you want to see which of these expenses can be converted into business expenses. For instance, I¡¦m sure that you spent money on your automobile lease or note payments, gas, insurance, repairs, etc. In many cases, a portion of these can be converted to business expenses, if properly documented. Then, take a look at your phone bill. Some of this can be converted. The same is true of travel, meals and entertainment. And work your way down the list. The key is not to add additional expenses just because they are deductible, but rather to convert those things that you are already spending money on into legitimate business expenses.

Keep in mind, that the I.R.S. has specific rules concerning each kind of deductible expense. These rules must be followed. It is imperative, therefore, that you work closely with your accountant to insure that you are in compliance with these rules. THERE ARE STIFF PENALTIES IF YOU FAIL TO DO SO.

Why a Corporation Helps you Save Taxes *

Lets look at the tax advantages of the corporation. The difference between how much or how little you pay in taxes is when you pay your taxes as an individual or as a corporation and what your tax rate is.

Your Tax Base and Tax Rate Make a Big Difference to Your Savings! Tax Help

Individual Corporation
Your income (Your Tax Base) Your Income
Tax at 28% **

Expenditures Expenditures
Your Tax Base Tax at 15% ***
Savings Savings

Sincerely,
Drew Miles, The Tax Saving Attorney

Drew has combined what he learned during formal education, informal education and twenty five years of business experience in the development of programs designed to teach people how to build and preserve lasting wealth. He is an author, teacher and international speaker in the areas of asset protection, and tax saving and wealth building strategies.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Other Law Sites
Search The Internet For Other Law Sites

Law Books
Search For Law Books At FindaBook.com

Kirsten Branigan Joins McDonald Law Group, LLC Adding Depth in Employment Law
Kirsten Branigan and Nancy McDonald join forces with a shared passion--advocating for advancement of women in the practice of law.

Understanding The Law...Criminal Law
The following Q&A's have been provided to help you better understand Criminal Law.

New Legal Guide to Divorce by Family Law Expert
A brand new legal guide to divorce, "Divorce and Separation Today", has been newly published by DragonCub. Far more useful than the average divorce guide, it delves into how the divorce courts operate as well as providing practical and sensible advice on emotional and other sensitive areas. It is an essential guide for anyone considering or going through divorce.

Divorce Lawyer Says Families Do Not Belong In The Court Of Law
Fresno divorce attorney Erin Rhames-Childs says that the court of law is no place to divorce. The courts are overworked and understaffed - leading to poor legal decisions that are not in the best interests of those involved. Collaborative divorce is a way for couples to divorce while maintaining their dignity, making decisions that truly are in the best interests of their children and preserving their finances. Collaborative divorce is quicker, cheaper, and better for maintaining functional relationships for after the divorce is over.

Monroe, N.C. Family Law Attorneys Merge Practices to Form Stepp Lehnhardt Law Group
Donna Stepp and Dana Lehnhardt combine local practices and operations, creating 4-attorney general practice law firm with emphasis on family law

Pending Federal Law Threatens All Copyright Owners says the Hodgson Law Group
The Shawn Bentley Orphan Works Act of 2008 (S. 2913) "Orphan Works Act of 2008" (H.R. 5889) allows anyone to use a copyrighted work without first obtaining permission. The user can later claim that a diligent search was conducted but the owner could not be found in any later action for infringement. This new legislation will apply to all copyright owners whether or not the work was previously registered with the Copyright Office. The legislation threatens the rights of artists, photographers, composers, film makers, publishers, and visual artists says the Hodgson Law Group. The Copyright Office not only endorses this legislation, but also advocates further changes that go beyond the proposed statute in reducing copyright protection. T...

Tax Attorney Site Answering More Questions on New Tax Laws
TaxAttornyHelp.com, an online tax law attorney service provider, has answers to questions on new tax laws that affect filers in 2008.

Tax Attorney Web Site Warns of Upcoming Tax Laws in 2008
TaxAttorneyHelp.com, an online network of tax attorneys, is preparing to assist taxpayers with new laws in the coming year.

Houston Bankruptcy and Family Law Practice Announces Affiliation with Houston Civil Litigation, Business Law and Immigration Law Firm
Houston bankruptcy attorney Michael Busby of Busby & Associates joins forces with Carlos Peniche & Michael Rojas of Peniche and Rojas to offer Texans comprehensive legal services - from divorce, personal injury and civil litigation to contract disputes, employment law and immigration services.

CalBizCentral Announces Booklets to Help Businesses Navigate State, Federal Employment Laws, Reduce Legal Risk
CalChamber's CalBizCentral 'What Every Manager Needs to Know About' series provides training managers need to comply with confusing laws.

Legal Services of Labor Law Attorneys
Labor law attorneys deal with a broad range of labor issues mainly related to how employers treat employees, former employees and applicants for employment. This includes all the areas of the employer-employee relationship, negotiations, and the collective bargaining agreement.

Lemon Law Attorney, Dana Lynn Tarquini, Featured at Lemon Law Administrators Conference
Ms. Tarquini, one of the country's most prominent lemon law attorneys, participated in panel discussion at the 10th anniversary lemon law administrators conference in Atlantic City.

Los Angeles Divorce Attorneys, The Family Law Company, Opens a New Office in Beverly Hills
Los Angeles family law attorney and founder of The Family Law Company Pamela Wright opens a new office in Beverly Hills. The Family Law Company offers high-quality legal services at affordable rates for divorce, paternity, child custody and child support actions because justice doesn't have to cost a fortune.

Tax Attorney Roni Deutch Analyzes Proposed Tax Laws in New Featured Blog
After nearly seven months of blogging, tax attorney Roni Deutch has posted a new featured blog analyzing the causes and possible outcomes of a new proposal that is being backed by the Internal Revenue Service. The proposal is part of President Bush's 2008 budget, and attempts to lower the gap in what taxpayers pay and what they should pay in taxes, by requiring many Internet companies to collect personal data from their users.