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Tax vehicles is one big advantage. Your take home as an employee on $500K is only $250K a year, whereas you can defer income in a business and pay 20% tax.
by jejeyyy77 3y ago
Tax vehicles is one big advantage. Your take home as an employee on $500K is only $250K a year, whereas you can defer income in a business and pay 20% tax.
- mgaunard 3y agoA business that's not a self-employment scheme would also need to pay founders through salaries. Of course you can also have shares and dividends but the same applies to being a normal employee in a normal company.
- jejeyyy77 3y agoFounders can be paid entirely in dividends. They can also choose what salaries to pay themselves - thus bringing down their taxable income bracket spread out over time.