There are many ways to substantially stop personal Internal Revenue liens, stop alimony and stop creditors. You can stop phone and email harassment by debt collectors (sorry, search engine repetition) with our Free Stop Calling Letter. You also can largely stop Internal Revenue, stop alimony and stop creditors with a corporation.
I am not simply talking about the way corporations normally limit your personal liability for corporate debts. I am talking about creatively using corporations or limited liability companies, to largely stop Internal Revenue, stop alimony and stop creditors.
Most states let you incorporate quickly and inexpensively. Florida is especially good, partly due to our Google top-rated Free Florida Corporation program. This is the fastest, easiest and least expensive way to incorporate anywhere. It is completely free, except for the $70 state incorporation fee (which is much higher in many states).
Florida and our program only require one name as an incorporator, registered agent, officer and director. Please note, however, that this form does not show who owns the company. Anyone can incorporate a new corporation for you. They also can get your new corporate identification number and your optional Internal Revenue S election. They can even open a company bank account and get a signature stamp for it. Once they do all this, they give you the corporation.
You do not need to notify anyone when you get control of a small corporation. A simple form can protect the original incorporator from later liability. Only when you file a year-end corporate income tax return, eight and one-half months after the end of the tax year, do you tell Internal Revenue about ownership. You can even delay filing the corporate return, as the related late filing penalty is only a corporate liability. An S corporation can help you substantially cut your Social Security and Medicare tax, while letting you avoid ever paying the company share of these and other taxes, penalties and interest.
Corporate tax returns are not a public documents, so you can stop alimony and creditors for a long time. Internal Revenue also almost never levies against small corporations for personal debts.
An S corp is also the best way I know to stop Internal Revenue, stop alimony and stop creditors, by substantially cutting your income. It does this by giving you many new deductions and moving some personal deductions to your corporation, thereby cutting tax. For example, you often can deduct much of your:
- Interest on corporate returns, instead of losing it on personal returns.
- Auto expenses between your home office and your main corporate office, instead of losing this as an employee.
- Home office rent, without calling attention to this IRS target.
- Employee meals at home, if paid by the corporation for its business reasons.
These deductions will now go directly against corporate income, instead of being wasted against minimum standard deductions. For example, say I show you how to move $5,000 of your $13,000 of itemized deductions to a corporation. You may then get a personal standard deduction of around $10,000. That will cut your income by $5,000, but cut your personal deductions by only $3,000, for a net $2,000 decrease in taxable income. That is a small part of the story, since many corporations cut net taxable income by more than $10,000 and dramatically cut taxes.
Having a corporation cut your income also can qualify you for much bigger earned income credits, disability income and other benefits. The corporation could lower income too much for Social Security / Medicare or earned income credits. If this does not give you the lowest possible net tax (or refund), plus needed Social Security / Medicare benefit credits, good tax planning can let the corporation pay you a salary or commission.
Low personal income and deductions even make Internal Revenue exams less likely. Finally, by the time one corporation no longer lets you stop Internal Revenue, stop alimony and stop creditors, you can get a new one.
The final chapter of stop Internal Revenue, stop alimony and stop creditors may have you contact us for economical tenacious help with Internal Revenue, alimony, child care payments and other creditor actions, as very few CPAs have the Internal Revenue or coutroom experience of the best QuickBooks CPA.
