Worth a shot?

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Dnkldorf

Dnkldorf

Senior Member
Times are a little slow right now, so I was thinking.
I am thinking of burying all profits back into the business somehow, with equipment purchases, new tools, vehicles, buy some ground?I don't know.

Let?s say I totally break even, with no profit when I?m done. Maybe we?ll leave $10-15K on the books for the IRS..

Now, being an S-corp, and taking the ?reasonable salary? that the IRS forces me too, I take the min $7,500 as salary.

Then I file individually from my spouse, and claim income below the poverty line?.

I?m thinking that next year, when the government starts handing out free money and low interest loans to low income people with small businesses that I would be sitting pretty.

I end up with a bunch of new stuff, low interest loans from the gov, and the economy is starting to turn around and business picks up.
 
K

khixxx

Senior Member
Location
BF PA
I would think now would be the time to get some big ticket items. Interest rates are seriously low. I think next year we will start seeing interest rates going up. In the end I wouldn't be surprised if they were double digits IMO.

I have been getting cheaper labor down on some of my rental properties. You know stuff that needed done that I was putting off.

I just bought an 2008 left over F250 Diesel for $31k OTD it was stickered at $47k.
 
Rewire

Rewire

Senior Member
Location
Lake of the Ozarks
Dnkldorf said:
I tell him I'm backed by Uncle Sam (the taxpayers) and the SBA.
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Banks now want you to have more than just a pulse,lending is still possible but not as easy.A good plan is what they will be looking for we are expanding our operation into another city we have hired a cusultant to help write applications for stimulous money.
 
Dnkldorf

Dnkldorf

Senior Member
Rewire said:
Banks now want you to have more than just a pulse,lending is still possible but not as easy.
Click to expand...


Huh, it is easy as heck to get money if your broke and have debt. It is impossible if your books are squeeky clean and debt free.

Look at what they have out right now. The gov made up to $35,000 available to small businesses, but it has to be used to pay off existing debt. The loan is interest free for up to 6 years, and you don't start paying it back until like 6 months after the last disbursment of the loan funds.

So if you have debt, you can apply. If you don't, you can't.

google SBA ARC loan program.
 
walkerj

walkerj

Senior Member
Location
Baton Rouge
weressl said:
The Government will be handing out $'s that are my taxpayer $'s. That is 'your' free money.

SHeeees:mad:
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Makes me sick also.

Dnkldorf said:
Huh, it is easy as heck to get money if your broke and have debt. It is impossible if your books are squeeky clean and debt free.

Look at what they have out right now. The gov made up to $35,000 available to small businesses, but it has to be used to pay off existing debt. The loan is interest free for up to 6 years, and you don't start paying it back until like 6 months after the last disbursment of the loan funds.

So if you have debt, you can apply. If you don't, you can't.

google SBA ARC loan program.
Click to expand...


Where do you think this free money comes from?

Now all the people on top of their game, with no debt, have to pay for yours?

Makes perfect sense:roll:
 
Rewire

Rewire

Senior Member
Location
Lake of the Ozarks
Dnkldorf said:
Huh, it is easy as heck to get money if your broke and have debt. It is impossible if your books are squeeky clean and debt free.

Look at what they have out right now. The gov made up to $35,000 available to small businesses, but it has to be used to pay off existing debt. The loan is interest free for up to 6 years, and you don't start paying it back until like 6 months after the last disbursment of the loan funds.

So if you have debt, you can apply. If you don't, you can't.

google SBA ARC loan program.
Click to expand...

then go get it and I hope it works out for you
 
C

CopperTone

Senior Member
Location
MetroWest, MA
Drive your healthy company into massive debt to try to get a gov. bailout? yea that sounds like a good business plan.

you would be better off having great professional relationships with a banker, an attorney, an accountant, and a financial adviser.

I had an accountant once tell me " there are plenty of ways to legally "hide" your money". For one, try a simple IRA - you'd be surprised how much pretaxed money you can max into one of those and get a pretaxed company match.

Or buy a piece of property to run your business from. with this economy you can get great deals and a great investment to sell 10 years down the road.

Cash is king right now - if you have it hold on to it - you still don't know what 6 months from now will bring - Buy what you need - don't just spend to spend.
 
H

hardworkingstiff

Senior Member
Location
Wilmington, NC
From what I'm hearing, it will be 18-30 months before things start to get better and then interest rates will kick in hard to slow it down.

Your best plan is to shore up your balance sheet. Being self employeed, you should have at least a years worth of living expenses in easily retrieved assets. In this economic environment you might really need to bump it up to 2 years.

Taking a $7,500/year salary is a good way to trigger an IRS audit, so make sure your books are perfect and you are squeeky clean.

Planning to fool the government into giving/lending one money if one could have gotten by without it makes one part of the problem and not part of the solution. :smile:
 
Dnkldorf

Dnkldorf

Senior Member
hardworkingstiff said:
Planning to fool the government into giving/lending one money if one could have gotten by without it makes one part of the problem and not part of the solution. :smile:
Click to expand...


Depends who's perspective your looking at.

On one hand, I would appear to be using the system to my advantage, and legal also.
Yet on the other, one might see me as part of the problem, for using this system to my advantage.

Do I think of me and make out great, or do I think of everyone else, and keep trucking along just fine?
 
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