Avoiding Double Taxation
Subject: C Corp
I just read your article on the web as I am researching what to do. Here is my situation I am withdrawing funds from my old 401k to invest in a franchise. The company Benetrends and or Guidant indicate that they would form a C corp for me which would buy stock in the new company.
Some people have brought up the “double taxation” issue with C corps. The cash flow from one franchise is about 25 K on a 60-85k Invetsmnent. The other location which I might get is is a 15k cash flow based on a 45-55k investment.
What would be your advice? I plan put in some amount into 401 k with the new corporation to reduce taxes but I need to withraw funds ( that wont be taxed again on my tax return) to reduce debt elsewhere,
Do you know of accountants in the dallas area who would be able to keep the books for my new corp?
Thanks in advance for your time.
There are so many very easy ways to pull money out of a C corp in a tax deductible manner that any good tax consultant can help you avoid any double taxation.
There are far too many options to consider and possible scenarios that can be used to achieve your goals for me to even begin giving you specific advice via this medium. You will need to work directly with an experienced tax pro who can analyze your unique circumstances.
I wish I could be more help; but I already have too many clients to take care of properly; so we are still trimming back on the difficult clients and are not accepting any new ones at this time.
Unfortunately, we don't have anyone specific to whom we could refer you. I did recently post some names and links for some like-minded tax pros around the country.
If you haven't already done so, you should check out my tips on how to select the right tax preparer for you.
You should note that geographic location should not be the main criterion for selecting a tax pro.
I wish I could be of more assistance; and I wish you the best of luck.