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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: labestul who wrote (17665)	12/31/2001 4:27:06 PM
From: rgammon	Respond to of 18932

The consultant idea will work. The corp issues a 1099-Misc for the income stream it feeds to Tom. Tom records it as Sch C income on his tax return, AND gets to deduct travel expenses for AIM Clan Gatherings, and other Money Show events that he participates in as a business rep of the corp. Tom pays SE Tax on his net earnings, and gets to make a retirement plan contrib. Now as self employed (contractor), his contrib to the retirement plan shoots WAY up, more than any corporate employee. This plan is refered to as a Keogh. Health insurance premiums also become deductible outside of Sch A. The kicker is the cost of setting up and running the corp. Note, we are NOT talking about an S Corp, at least I don't think so. There may be some sticky bits to this, so I would suggest consultation with a lawyer in your area that assists clients in starting up new corporations. Explain EVERYTHING to the attorney so that the appropriate corp structure can be selected. Barry was suggesting an LLC, I think. Robert