By DAVIID STENDAHL
It is a very indepth book approximately cash administration. It appears to be like into why cash administration is so vital to be a winning dealer and appears at how most sensible to spend it slow while constructing a winning strategy.
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Many self-employed people don’t make enough money to even consider income splitting—particularly when they’re first starting out. If you start making so much money that you want to split income, you can always convert your S corporation to a C corporation. c. Self-employment tax A little-known tax benefit of forming an S corporation is that it can save you Social Security and Medicare tax. 3% tax on your first $84,900 in income in 2002; the ceiling is adjusted annually for inflation. 9% Medicare tax on the excess.
Starting in 2003 and later, this amount increases to 100%. This deduction applies to health insurance for the self-em- 2/14 WORKING FOR YOURSELF ployed worker and his or her spouse and dependents. This means that unincorporated self-employed people and S corporation owners will be on an equal footing with C corporations, at least in terms of deducting health insurance premiums. However, C corporations still retain an important advantage in the area of health costs: A C corpo- THE BUGABOO ration can establish a medical reimbursement plan that reimburses employees for medical expenses not covered by insurance.
For information on handling corporate formalities in a streamlined manner, see The Corporate Minutes Book: The Legal Guide to Taking Care of Corporate Business, by Anthony Mancuso (Nolo). b. More complex bookkeeping It is absolutely necessary that you maintain a separate corporate bank account if you incorporate. You’ll need to keep a more complex set of books than you would as a sole proprietor. You’ll also need to file a somewhat more complex tax return, or file two returns if you form a C corporation.
Money Management Strategies For Serious Traders by DAVIID STENDAHL