bad news, good news

The SNR depends on the average value, of course, which scales with size. Consulting is more like the photon-counting version. ;)

Cheers

Phil Hobbs

On Wed, 27 Jan 2016 21:11:51 -0500, Phil Hobbs Gave us:

Watch out for those collisions!

Never been audited, but I expect if fluctuations are flags for the IRS I will eventually be audited. If your business fluctuates like photons, mine is more like winning the lottery every couple of years.

CPAs are worth every penny you pay them.

Given that the US tax code runs to around 100,000 pages, yes!

it's just another facet of the "war against cash" - and bank deposits are just another form of cash to them. They don't want saving.

My company got nailed by an IRS taxpayer compliance audit years ago. Dunno if they still do that, but we were picked at random and it involved looking at every single transaction, expenditure, etc.

After the first full day it really drove up the wall. My office manage said, go away, let us and the accountant handle it. Took four days and all they found was one small shipment whose receipts should have been accounted for in the next year. But it must be a rule -- they have to find something to justify the whole exercise.

Do they scold you and say "don't have money?"

We lost money for the first time this year. (sales are down.. no new products, which is partly my fault. I don't know how to work on a project that I don't think is going to work very well, no matter how much I work on it.... Grumble, sorry for being an eyeore.)

George H.

There are a number of issues, not sure how many. They prefer that companies distribute earnings as dividends, so the already-taxed dollars can be taxed again, as income tax to the recipients. They also want to make sure that the money isn't being used to benefit management in some non-taxable way, which I don't understand (and since I can't understand how that could be done, I haven't tried to do it!)

The tax code is 100K pages, and people tell me that there are lots of ways that retained cash can be abused. I just design electronics and figured it would be prudent to save some cash from a good year.

The fat cats, Microsoft and GE and Apple, pay a few per cent corp income tax, and stash the cash offshore and manufacture in China. We manufacture here and pay around 40%.

Let's hope you saved some cash from past years, so you can keep everybody employed.

Yeah no problem at the moment. (Cash is being poured down what to me looks like a rat hole, But I can't be specific until it's officially announced.)

George H.

I don't think any of the the alleged 100k pages of tax codes have any line that states

"we prefer you do..." and so forth.

Rolling your expensive hobbies into the company is one way to do this. I was fascinated by how many small local manufacturing companies have "corporate" airplanes. Just did a search on this recently. I had no idea UPS wasn't good enough for these folks, or that they had lots of important business meetings to attend to.

Unless you're being threatened somehow, do whatever the hell you want.

When I had to deal with a corp. the accountant suggested the perfect blend of salary and dividends. You don't pay various taxes on dividends, such as social security. The tax rules are complex only to benefit the parties that create them. Play along. There's no doubt tens of thousands of pages of gimmicks you can use as well.

There is nothing wrong with having money in the company at the end of the year. That is normal operating procedure for many companies. However, when the corporations are publicly traded the stock holders want their share of profits so while the company has to have adequate cash flow, they often pay profits out as dividends. Otherwise, why own stock in a major company with limited growth?

Small companies like yours don't have to worry with such things. The IRS may want to see your expenses to make sure you aren't paying for a new swimming pool at your home.

I don't keep everyone employed. In 2015 it had been over a year since receiving an order, so I started paying myself $1 a month. Then the floodgates opened up in the second half and I had to pay myself a salary.

Hmmm. Way back was in the same situation. Our accountant said we had to p ay ourselves the minimum wage. Or at least that is what my partner said the accountant said. I never verified that it was true. The difference betwe en zero and minimum wage was not that great.

Dan

And you complain about datasheets.

Minimum wage is an hourly rate. Were you still putting in 40 hours a week? I don't. I work a very few hours each day while I have orders pending. The rest of the time I lay myself off or something like that.

Den torsdag den 28. januar 2016 kl. 04.36.54 UTC+1 skrev John Larkin:

just read the tale of how start a Chinese company

-Lasse