And you also get to pay something like a 14-15% self-employment FICA. I owned an S corp. Incorporating is no way to save on taxes. And it is a nuisance that gets you little benefit. The best way, is to be "unemployed" and report your profits as cap gains.
rufus_4000; your post is very informative and clear to points. Anyway, i was always baffled that many "wealthy" individual in Asian want to immigrated to US, not Canada.
Go fuck yourself idiot... even if it was spyware, it could have been an accident and not an intentional thing done. There is no need to emit dirt from your fucking mouth.
Was there a spyware? It is just a link. I did not mean to put some spam here. I apologize, if it is the case. Did you click the link, or you just know it from that guy from the page 2?
Can I do so? I mean if I buy something that is not related to the nature of the business a company conducts (e.g. a parachute), won't it look suspicious for tax authorities? In other words is it legal to deduct cost of goods that you personally consume from the revenues of the legal person?
I once read a blog comment: If you want to save the US economy bomb the Caymans." Any truth in such a statement? Cheers.
I wasn't talking about parachutes although hiring hookers might be a company expense. But you can have a bunch of cars as company cars (insurance of course paid by the company), even living real estate as company offices and all the employees (relatives) health insurance as benefits, thus expense for the company. Also all the computers and monitors, they are part of the business thus deductibles. If the company decides to provide free lunch for the employees, there you go. But sorry, no parachutes..
In case you buy cars, you have to buy gasoline also from company's name. If you do not do so, then everything will be obvious. If you buy gasoline, then you need to prepare bunch of documents on how the gasoline was spent. Isn't it so?
Now, here comes the complication. Since often a lot of the hedge manager's own income comes as a slice of the fund itself, so what happens to taxes? Enron (hehe), lead a group of fund advisors (which Enron often sees itself as one), convinced the US congress to pass a law (I believe attached to the Derivatives Modernization Act, aka, Jesse Helm's deregulation act), that indicates that fund advisors can *defer* their gains in the fund itself, for up to 10 years, and is only subject to income tax after or once the income is "cashed out", and taken on-shore. This is *huge* for hedge fund managers. Since they can effectively defer the capital gains up to 10 years into the future. I asked about it on this forum long time ago, nobody knew a shit. I got my answer now. Do not forget, for U.S. citizens, anybody who can trade, trading in your retirement account is a huge thing.