Quote:
Originally Posted by Porsche-poor
Moring all. Cold and foggy here today.
Glen do you count over night computer time as time worked?
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I count it as the time it takes for the project to complete, but that is about it.
I don't count it as my time "on the clock" that I am paid for. We don't have a paycheck, or salary at all. I just do a "draw" on the company checking account to my personal account and my partner gets an equal draw. That is not taxed at all. All the taxes are figured on what profit the company makes. The company does not pay taxes, it is all paid buy the two partners. Ain't that clear and logical? Only the US Government could have such complex crap to figure taxes.
Bottom line. We might go for a month or more with no draw at all if the company is not making money. If we get a nice check from a client paying their bill, we get some money to live on. We run a profit and loss report every quarter, and start figuring out an estimated tax payment that my partner and I each pay from our personal accounts.
Coming up to the end of the year, if we have a good profit, we renew the software licenses, and buy the "stuff" we need for the airplane to get the profit lower.
We try to practice 100% legal tax avoidance, and not even a hint of tax evasion.