Going Ag in TX

[stevenf]

Fishman you need to look at the bright side I've worked in this business since 1979 and my wife and I bought it in 1999 and did pretty good the first almost 2 years and then Sept 11 came to pass. Prior to then we had 12 employees today we have 2 and either one of them make as much as my wife and my salary combined we have taken a 85% pay cut and continue to struggle to keep the shop going my wife and I both work 60 hour average weeks the employees have not been demoted one penny and the other 10 left through attrition and probably the reality that the well was quickly running dry although I would have completely depleted our savings before firing even one of them. I don't even wish for a raise I just wish I could get back to somewhere closer to where we were almost 5 years ago. Be glad that there is someone else at the helm and on friday you have a paycheck and can go home at night with no problems concerning work if you choose.
Sorry but be thankful for what you have as we are still learning to do without.
Steve

 

[fishman]

Stevenf,

You're right, there's always someone who's got it a lot rougher than yourself. One only has to look in the paper any given day to see that. Heck, we can't be doing too bad, we each have a tractor. /forums/images/graemlins/smile.gif

Don't read too much into what I wrote. Just trying to get across the point that taxes pay for services, people provide those services, and they've got bills the same as everyone else. Oh, and Sneakypete asked about it, so it's really all his fault. /forums/images/graemlins/wink.gif

 

[sneaky_pete]

Certainly there are ups and downs to being in business for yourself - I did it for four years, and never worked harder in my life, but to me the freedom and independence were well worth it. I got talked into coming back on a payroll by one of my larger clients, and regret that decision now. So now I'm figuring out how and when to spool up my business again. Mine is mostly a service-based business though, so I'm not dependent on retail sales as it sounds like you are Steven.

Good luck with yours; I hope you are rewarded for your perseverance. BTW, I was in Boerne last June for a wedding; it's a very nice town and the land to the west is beautiful - if you have some of that you are fortunate indeed.

 

[sendero]

(
The best thing about a corporation is that a corporatrion pays all of its bills first and then is only taxed on what is profit after that, and in Texas there is no franchise (corporate) tax at all on the first $50,000 of profit. It is pretty easy to have a decent standard of living and show less than $50,000 profit every year.
)

When did this happen (the 50K exemption)? I haven't made any profit the last couple of years, but there was certainly no exemption like that before 2002 or so.

 

[WhiteRock]

I seems that not all businesses have to pay the TX franchise tax. How does that work?

 

[sneaky_pete]

</font><font color="blue" class="small">( When did this happen (the 50K exemption)? I haven't made any profit the last couple of years, but there was certainly no exemption like that before 2002 or so.)</font>

Billy, do you have a "C" corp. or a sub-S or an LLC? The franchise tax only applies to C-corporations; in a sub-S the taxable income just flows through to your own personal taxes. Not sure about the LLC. Mine is a C-corp, and I have had it since the year 2000, have made a profit every year, and have never paid any franchise tax. You really need a good CPA who understands small corporations and self-employment to get the most benefit from it.

 

[sneaky_pete]

RE: Texas Franchise tax exemption, see here. If you have gross receipts less than $150,000 OR total taxable capital less than $40,000 you pay no franchise tax. In my business it is relatively easy to meet these requirements, but you have to be careful of how your cash flows in and out. Again, a knowledgeable CPA is of utmost importance.