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Jim Henderson wrote:
> That's not what I said. The tax paid based on the sale of stuff at $20
> each you collect sales tax for.
Yes. That has nothing to do with income tax, tho, so I'm not sure why you
bring it up.
> If some portion of that translates into
> personal income, then you have to pay personal income tax on that,
> obviously.
Even tho it isn't reported, right? :-)
> But a local gas station has to have a business license, and in order to
> have that, doesn't it have to be registered as some sort of corporation?
No. A corporation is a separate entity. That's orthogonal to whether you
need a license to do business.
> You seemed to be suggesting that she would have had to meet with people
> from the IRS.
Uh, no. I said you have to get permission from the feds. That doesn't imply
meeting with them. It just implies that you follow the rules for them to
approve it.
>>>>>>>> Did you take them as an individual, or a corporation, or what?
>>>>>>> Individual.
>>>>>> Well, a corporation has to report everything, even if they don't get
>>>>>> a 1099.
>>>>> Yes, but we were talking about individual income tax?
>>>> Yes.
>>> So I'm not clear as to how we're getting them conflated.
>> Because an individual can't be a non-profit organization?
>
> Well, if I was going to be facetious about it, I'd point out that there
> are plenty of people who personally don't make a profit. ;-) But I see
> what you're saying.
There are plenty of for-profit corporations that don't make a profit either.
I'm talking about the rules. :-)
All I'm saying is, a 503(c) is (usually) in the form of a corporation, and
certainly is a distinct entity (perhaps a partnership or a non-revocable
trust) and not an individual. I'm also claiming that there are moneys that
are never reported to the IRS that you nevertheless have to pay tax on,
whether you're a corporation or an individual sole proprietor.
>> It doesn't work that way. If you're a sole proprietor, you don't have a
>> separate EIN for the business.
>
> K, I'll take your word for that.
If you do, it's either a partnership or a corporation. That's why it's
called a "corporation", see, because it has a "body" separate from you.
>>> That
>>> way if the business tanks, it's the business' finances that are hosed
>>> and not your personal when you file for bankruptcy.
>> That would be a corporation.
>
> Yes.
It's a good idea. It's just not required. :-)
> Well, I was thinking the latter was a subset of the former.
No. :-)
> It's apparently a good thing I'm not a tax consultant. ;-)
Yes. ;-)
--
Darren New, San Diego CA, USA (PST)
There's no CD like OCD, there's no CD I knoooow!
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