I've just registered a Sole Properitorship for my online business. The hosting is in the US, which apparently does not consitute as being US tax liable. All revenue is generated overseas as we don't sell any products, which apparently is tax free income?
The question is this, what's the most tax efficient way of paying myself bearing in mind that I would like to apply for a mortgage in the future!
Do I pay myself a massive sum and pay higher income tax?
Do I pay myself a miniscule sum and take dividends and probably reducing my chance of a mortgage?
Do I speak to an accountant? =)
Love to hear some advice!
-
09-07-2008, 11:30 AM #1
Tax and Things
-
-
09-07-2008, 09:01 PM #2
As you have registered a Sole Properitorship , you cannot pay a salary to yourself. The total net proft after deductible expenses will be taxed at applicable tax rates.
Question of Dividends does not arise.
After tax profit is yours to do as you please.
-
09-07-2008, 09:06 PM #3
Indeed - you obviously have not understood what it is you have registered.
You might perhaps start your education here.
-
10-07-2008, 11:13 PM #4
So I've wasted $450 =/
Thank you very much for the pointers!
in Cantonese and Mandarin: When you speak Mandarin, people listen! Become fluent in
in Hair Removal / Waxing & Threading: Founded in 2007, Nude Beautique became Hong Kong's pioneering
