quote:
Originally posted by Dazza
could u bear us some more info steve? how u set it up and run it etc? give factual numbers instead?
while driving back home, i came up with an idea....
ok say i start the company with $10,000
You have a choice of either introducing it as Paid In Capital (ie equity) or as an advance to your Current Account
now my main concern is, i will be investing $200 weekly to the company. how do i do that? under what transaction?
The transaction would simply be adding $200 to your current account each week
now i will have a debenture to parents of say 8% pa *say they gave me the 10k*
end of financial year, say i made 2k from the trades. so i pay my olds 800 bucks *the 8%*.
that leaves me with 1200.
can i like transaction say give shareholders all profit, therefore $1200 is given to me... then i pay personal tax , say its 20% = 240 bucks...
thus i have left over of $960...
now can i then reinvest that 960 into the company as new capital?
that for , the year ending the balance sheet will be $10,960?
Yes, you may allocate the profit to yourself as a shareholder salary for tax purposes and this would be the current account balance if the company paid the tax on your behalf
instead of...
NP afta expenses etc = 1200... then u pay the 33% tax... and retain all earnings.. etc etc..
is that possible?
By doing it this way, the company would be taxed on the profit $1,200 @ 33% leaving $804 as Retained Earnings, which you have the option of paying out to yourself as a fully-imputed dividend
btw flat tax rate for companies = 33%?
Bookmarks