News for hackers. Stuff that matters.
Re:The suicide rate for farmers in the U.S. is more than dou... by InvisibleCities on Wednesday December 06, 2017 @12:12PM (#15862783)
Wouldn't that just make the overall tax burden worse? You'd have to pay corporate taxes on the farm profits, then pay income taxes on the salary.
Re:The suicide rate for farmers in the U.S. is more than dou... by danans on Wednesday December 06, 2017 @12:19PM (#15862854)
An LLC doesn't pay corporate taxes. It just passes profits or losses to shareholders proportionally and are taxed at the individual level.

https://www.sba.gov/blogs/6-things-you-need-know-about-your-...

Re:The suicide rate for farmers in the U.S. is more than dou... by pavement on Wednesday December 06, 2017 @12:28PM (#15862937)
Getting extremely creative, one might run a surprisingly unprofitable farm, while paying one's self minimum wage to operate the farm, single-handedly.

Getting creative, of course... But you know, a legitimate business would never operate like this, right?

They wouldn't take such a "subjective" point of view, when interpreting what are typically held as "objective" values and facts with only one single interpretation of The Truth, right?

Oh, wait...

https://en.wikipedia.org/wiki/Hollywood_accounting

Re:The suicide rate for farmers in the U.S. is more than dou... by xojp123 on Wednesday December 06, 2017 @12:16PM (#15862823)
I don't think so. I think LLC's allow one to pass through profits without double taxation. C corps, I believe, are the type that suffer from double taxation. Correct me if I am wrong though.
Re:The suicide rate for farmers in the U.S. is more than dou... by wahern on Thursday December 07, 2017 @03:10AM (#15868489)
Salaries are a deductible expense for any business entity, so that money is never taxed twice by any reckoning.

The debate about double taxation of corporate profits relates to taxation of dividends, which are neither exempt nor deductible from a business' taxable income. Because shareholders are one and the same as the corporation according to some strains of legal and economic reasoning, by taxing dividends you've taxed the shareholders' profits twice.

If you control a corporation, you could achieve the same tax treatment as pass-through entities merely by paying yourself a salary instead of dividends. But if you did that, pass-through entities are easier because there are fewer formalities involved. The real gripe is that because dividends are taxed at a flat 15-20%, paying yourself in tax-preferred dividends is a tantalizing prospect but-for the supposed double taxation "problem".

The debate is admittedly a little more nuanced when discussing passive investments, but that's a different context than family farms.

Re:The suicide rate for farmers in the U.S. is more than dou... by brightsize on Wednesday December 06, 2017 @03:17PM (#15864568)
You are correct. LLCs don't pay federal business income taxes. An LLC can retain earnings inside of the company but the members are still going to be taxed individually as if the earnings had been paid out to them. US S-corps work in a similar way: https://www.irs.gov/businesses/small-businesses-self-employe...