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Even in a world of non-zero interest rates, there's little reason to store money in corporate accounts instead of shareholder's.
by jldugger 7y ago
Even in a world of non-zero interest rates, there's little reason to store money in corporate accounts instead of shareholder's.
- ac29 7y agoThese are small businesses, though. Presumably nearly all of them have no shareholders (at least not the same way large corporations do).
- GauntletWizard 7y agoAll the more reason not to keep cash there. The way US corporate taxes work, if you keep cash year-to-year in the business itself, you get taxed on it - And then you get taxed again when you disburse it to yourself. Remember this the next time you hear a talking head complaining that corporations pay zero taxes.
- cryptonector 7y agoUh, no. If the business is a corporation then it has stockholders, and if it's a small business (meaning probably not interested in being a high-growth company) then it's likely letting all of its earnings pass through to the owner(s) as salary and distributions.
- whatsmyusername 7y agoLaughs in bankruptcy