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Minimize income tax. When it comes to taxable income it is far from how much you make but how much you reach keep that matters. Monitor the latest variations in tax law so that you pay the lowest amount amount possible.
In fact, this column was inspired by an innovative York Times article that ran last week, arguing that generous tipping "is a technique that is guaranteed to put no influence over your products and services." (1) Then why does the person being tipped pay overtax?
Another angle to consider: suppose little business takes a loss for the whole year. As a C Corp there exists no tax on the loss, however there additionally no flow-through to the shareholders several an S Corp. The loss will not help your personal tax return at all. A loss from an S Corp will reduce taxable income, provided there is other taxable income to reduce. If not, then an incredibly real no tax due.
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