Question : I desperately need a good tax shelter, can I incorporate even if I dont have a company?
If i do start a company so I can incorporate into an S type corporation, can my business continually show losses?
- asked by eatton y
All Answers:
Answer #1
To incorporate is to create a company.If theS-Corp shows losses, they are not tax deductable,because an S-Corp does not pay federal incometaxes.Your ownership is based on how much stockyou own. You have to buy the stock initially, andsell it to take a loss. So the company sells youthe stock for say, $1000, and the company wouldbuy it back for say $1, and you have a $999 lossto use as a tax deduction. Do you realize howstupid that is?
- answered by Feeling Mutual
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measure and fulfill your financial needs
