Company Advice/Tips

[Hannes]

So, let's say that this company has been running for, well, 3 months, it has got $40 of profit but it doesn't pay tax, is the CEO of this company in a risk zone now, or?

 

[Ivain]

I believe most countries have a lower limit on what you have to pay tax over. I don't know if this is the case in the US, but in NL you only have to pay tax if you exceed 8000 euros per year ($9000 or so). Granted, as soon as you exceed that you get 30% rightaway, but for people like us who are unlikely to exceed it, its ideal.

 

[Hannes]

It's 40$...

I doubt the tax man would even bother coming after you as you would owe 15% of that ( https://en.wikipedia.org/wiki/Corporate_tax_in_the_United_States#Federal_tax_rates ) at the most.

That's even given if this "company" is registered then I doubt there would be any risks, in most cases the "businesses" on here aren't even businesses, just some kids that make some money and slap the label on it.

Basically you would have to be the unluckiest person in the world in order to get any sort of penalty from the tax man. So I think you can sleep easy lol.

I believe most countries have a lower limit on what you have to pay tax over. I don't know if this is the case in the US, but in NL you only have to pay tax if you exceed 8000 euros per year ($9000 or so). Granted, as soon as you exceed that you get 30% rightaway, but for people like us who are unlikely to exceed it, its ideal.

Haha, okay.