Ya, I think the corporate income tax is total bullshit.
I’m not saying your position on them is wrong, I’m thinking the reason you’re getting to your conclusion may be based on non-factual information is all.
Running into a meeting, and glad you didn’t take that post harshly or in attacking tone.
How is that? For both but specifically for entrepreneurs? And, equally important, what kind of entrepreneurs are getting these breaks–small business/sole owner LLCs, or venture cap?
I’ll admit openly I am not very savvy on this subject.
I believe, Beans correct me if I’m wrong, entrepreneurs can essentially contribute double what a W2 employee can to a 401(k). Once on the employer side (as an employer contribution), which is an expense; therefore, lowering EBT and then on the employee side, which lowers gross pay and thus taxable income.
I would think this is true of any pass-through entity, but with the tax code it wouldn’t surprise me if there are specific rules involved. .
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Enlightening, thanks! These things are so nebulous. I’m really trying to get my mind around tax code and business and all
USMC explained it well.
Your employer can match your retirement contributions, and as an owner you can choose to match it. However you can’t just match it for yourself, there or top heavy rules in place where a company can’t have the top paid employees have a shit ton in their plans if the employees don’t have any in. There are safe harbors the employer must meet before they can just max out an owner if the rank and file aren’t putting enough away.
(The idea being, you aren’t paying them enough to save, you can’t save yourself until they can…)
It’s open to everyone, in any industry.
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