Hot answers tagged income
6
How should I handle putting my own money into the business account so I can avoid double taxation?
You are mixing two unrelated topics. Double taxation has nothing to do with your bank accounts.
Double taxation refers to the fact that income is taxed twice. This occurs when a corporation's profits are taxed at the corporate level, and then a second ...
4
Income is income. The source of the income is a minor note in your accounting if you want to keep track of it.
In other words, the source of the money makes no difference. If someone buys your product and sends you $100 from Paypal, or $100 from a credit card, or $100 from a wire transfer, or $100 cash, or $100 from a check- the accounting is the same.
4
Assuming you own N percent of the company you will be default get ... nothing from your ownership. Nothing.
Ownership most commonly results in money being paid out in case of:
A decision to pay Dividends of profits.
A Liquidity event - which requires a willing buyer.
(If you don't recognize those words, then follow the above links.)
About dividends:
...
3
Typically a company like bit.ly works hard to build users and people dedicated to their service and then finds opportunities to sell add-ons or supplemental services such as: http://www.bitlyenterprise.com/pricing.html in which they make money from companies and enterprise clients using their data, or using bit.ly services to run their own URL shortener.
I ...
2
Is it considered a taxable fringe benefit for the employee?
Yes.
Does the company have to report the proportion of personal use on the
vehicle against the expense of the rental company as a taxable
wage/income?
Yes.
Don't forget to tip your server.
2
You need to create a company, eg. an LLC or a C corp. You need
figure out who the owners of the company are, eg. just you or all
three of you. The ownership need not be equal and can be vested
over time. You could consider having the other two be consultants
or employees at first. Given what you describe, I would not part
with ownership at this point, ...
2
Your boss, let's call him Mr. X, is holding all the cards in this situation.
I would like to tell you that the idea person gets 30% of the new entity and the money guy gets 70% but that's not how things work.
If I were Mr. X and I thought the new venture was plausible I would pay you a decent (market) salary and give you a nominal (1 to 10%) equity in the ...
1
Your accountant will probably tell you that the corporation will have to file a federal tax return. As a c-corp, taxes may have to be paid on any income. Most likely, the corporation will also have state taxes.
The fact your are not selling material goods may bear on sales tax, but probably does not affect your income tax liability.
1
Skill mostly depend on what kind of projects or teams you are exposed to during your tenure, not just on the length of somebody in the field.
Income from this project should commensurate with your role on this project.
For startup's with no income stream yet, the strife that occurs with the differences in Salary between the 3 partners is enough to shut ...
1
You're asking a question well beyond "amateur" knowledge you can find on this site (or at all, for free). This is a complex issue which you have to discuss with a tax accountant and a tax attorney. Generally, you should consider your business structure very carefully, and it might be wise to separate your international and US entities. Business taxation is ...
1
If the options are between "now" and "later", the answer is literally between now and later. Add the features at the time your users need them and your customers are willing to pay for them.
All you have to do is figure out how much user/customer demand you are prepared to wait for before you build the feature.
1
You could spend a lot of time programming and then find not enough people want to use your product for it to be viable - or they are not that interested in the extra features.
Get a Minimum Viable Product out there first and get feedback from customers before adding more features. Or do some market research with a mock up and a survey. Your customers will ...
1
First, if you take 60-70% and the web designer takes 30-40% then there's nothing left for the writer.
Second, equity should be split not based on what you've done prior to launch but how much you'll be doing after the launch. Writers make or break media outlets because they create the product. Is 10% of the business really a fair price for the writer's ...
1
If your site is not a gambling site but it's getting rejected from advertising vendors because it is a gambling site, then you just need to write to them and hope to get the decision overturned. I wouldn't give up because their automated system knocked you back.
As for some other ways to get more traffic:
Work hard on SEO. Organic search visitors is the ...
1
There are several aspects to this.
You're getting paid a market salary as an employee, but you'll be working as an founder/owner. There's a big difference between the two. The second one spends a lot more time on the job and worries about how it's doing even when not actively working.
If I was in the shoes of your businessman, I'd want you to have real ...
1
Founders are expected to make some sacrifices, but are not expected to live like paupers and not get paid a salary. Your getting paid a salary does not mean you somehow give up ownership of the idea.
As you develop your idea into an actual business, it will be worth more and more as it goes from idea to business losing money to business with customers to ...
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