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If you live in a place like the SF Bay area (or anywhere with a state income tax), take as little as possible for your salary. 60k max, and if possible even les
by kkt262 15y ago
If you live in a place like the SF Bay area (or anywhere with a state income tax), take as little as possible for your salary. 60k max, and if possible even less than that because whatever you take as salary you'll be losing 30%-40% of it immediately (which could better be used for your business).
You can expense your rent out of your company since you will likely work out of a home office. Car and (maybe) meals as well.
- laurentoget 15y agoYou probably can expense your rent, car and meals. However you also can get caught and tax evasion is a federal felony.
- zahnster 15y agoYou can expense PART of your rent and utilities, completely legitimately, if you have a home office and use your home office solely for your business. You just calculate how much % of your home is dedicated toward your work, and deduct as appropriate. You can expense your car if it is a business-only vehicle. You can also deduct business-related meals. All of those things are completely within the bounds of the law.
- mattlong 15y agoI would not recommend expensing rent. The best you can legally* do in the eyes of the IRS is get a smallish deduction/credit (I forget which) for however many square feet of your home are used solely as a workspace. *I am not a lawyer
- kkt262 15y agoCheck out this article for more information on the legality of expensing your apartment/car/etc. http://mywifequitherjob.com/business-expenses-what-you-can-deduct/ http://mywifequitherjob.com/business-expenses-what-you-can-d...