Tag Archives: salary

Keep On Trucking- 3

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Sorry, that I had to skip a day to complete this discussion on trucking businesses- and the future.

We’ve talked about why you have to consider autonomous trucking- where you aren’t needed as the driver as part of your considerations.  And, you have to develop a business plan (not the 30 to 100 page tomes you see for larger firms), but about 5 pages that lets you have a road map- and signposts to ensure you are on your way to a profitable venture.  (As discussed below, you also need this business plan to obtain your own carrier registration, to operate your own trucking entity.)

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Are you reasonable?

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As long as you do not operate as a  partnership (partners only get a draw, fully subject to all taxes, including payroll taxes), the owners of an enterprise are expected to be paid a salary.  That’s the IRS position- the one that counts.

Continue reading Are you reasonable?

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What? I am losing money and must take a salary?

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I have written about “reasonable compensation” rules, as they apply to those small businesses that employ the “S” (that used to mean ‘small’ business) designation.  This designation means one is incorporated or has set up an LLC and elected to be taxed as an S entity.  (The IRS demands you provide them a signed- by each and every stockholder- Form 2553.)

Continue reading What? I am losing money and must take a salary?

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Reasonable Compensation

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One of the services we provide our small business clients is to insure that the payment of reasonable compensation.  No, I don’t mean what they pay their employees (although we do that, as well, when requested).  No, I am talking about the pay they take for themselves- the owners of the S Corporation or an LLC operating as an S corporation.

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There’s a New Tax in Town…

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For years, the one crucial question I had to ask my business tax clients was, “Can you be considered to be a real estate professional?”  (If you don’t recall my discussions on this matter, you can refer to my blog posts here and here.)  Because without that certification, it’s possible that all expenses involved in rental real estate operations may not be deductible on one’s Schedule E (1040).

Continue reading There’s a New Tax in Town…

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Really? You care about spending, Pinocchio?

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It’s getting closer.  And, I don’t think it’s going to go away.  Because a whole bunch of folks think that, in a recession, it’s more important to reduce spending than to keep the economy growing.  You’d think that seeing the terrible results of the similar program in Europe would give them pause.  But, that also requires one to assume they either care- or understand.

Continue reading Really? You care about spending, Pinocchio?

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CEO Compensation and Corporate Performance

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I have already discussed the issues with inflated CEO compensation. One primary cause driving compensation upward is that many firms employ a technique that insures that he (it is typically a he) gets salary increases regardless of the performance at the firm. I have also discussed the problem that executives are paid ridiculous multiples (not 10 to 50, but 250 to 500 times) of the average pay at their firms.

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Really? Fareed Zakaria missed the boat.

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Fareed Zakaria published an op-ed in the Washington Post on Thanksgiving (literally and figuratively).  In it, he stated that we (Americans) should not be “enamored of Germany” for maintaining its industrial base through economic reforms.  Since, after all, we are in the “post-industrial, information economy”.

Continue reading Really? Fareed Zakaria missed the boat.

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