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Originally Posted by Willravel
This is really interesting information. My accountant, literally the most helpful man in America, has been providing me with advice about stuff like this. It absolutely astounds me how difficult it is to run a business under American laws. There are more loopholes and cheats than there are stars in the galaxy.
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I didn't mention any of the loopholes and cheats because I don't use them or think that they are ethical. A class-C corp is the only form that doesn't pass all income on for personal income tax, as opposed to corporate income tax (which is lower). Some of the things that accountants have suggested to me would be laughable, if so many companies didn't actually do that slimy stuff.
I forgot one additional benefit of a C corp. You get to decide what portion of health insurance is paid by the corp and what is paid by the employee. To the corp, it is a legit business expense and therefore deductible.
But the advantages in retirement planning for a self-employed individual are worth looking into.