mercredi 2 septembre 2015

New Small Business Tax Questions

I have a new recruiting company startup in Washington state, and we just launched a couple of months ago. I have two questions:
(1) Let's suppose the company has $50,000 of net profit in 2015, and I haven't personally taken any income from it yet. At the end of the year, that $50,000 will be taxed. However, if I pay those taxes and then pay myself $20,000 of that, it gets taxed again, correct? So it would make sense for me to pay myself out from that profit before the end of the year to avoid being double-taxed. Is that correct?

(2) Hypothetically, let's suppose the company's gross income in 2015 is $60,000, but the business expenses are $80,000 (mostly one-time startup expenses).
I understand that the $60,000 is untaxed (other than employer payroll taxes, unemployment etc), but does the other $20,000 of expenses roll over into 2016 for tax purposes? That is, I wouldn't have to pay taxes on up to $80,000 of income since I have $80,000 of business expenses. Does that reset in 2016, or is the first $20,000 the company makes in 2016 also untaxed even though the expenses were accrued the year before?

I appreciate any input!


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