My business is an S-Corporation that started it's first calendar year in 2011. I am the sole owner/shareholder. The business is an online membership website that receives revenue from membership fees and by selling DVDs that I create. I live in Colorado, USA.
I need tax strategies as well as tax advice. I have questions that I would like you to answer. At this time, I'm not asking for you to complete the tax documents that I send into the IRS/State of Colorado.
FYI, I use Paypal as my payment processor in terms of receiving customer payments. That is essentially my record-keeping book. I haven't used quickbooks, etc. but I don't feel that I would need to. I've also fairly familiar with the required forms for both federal and state that I am required to complete as I have been doing them thus far. I've learned a lot about how to do them and what is required.
1) Most of the business is automated and given that it's the first year, I should expect a return on my investment. I paid myself in quarter 2 & 3, $10,000 each for a total of $20,000 salary for the year. There is about $23,000 above what the bank account was funded with at the beginning of the year. I can give that money to me as a distribution and avoid payroll taxes.
2) What are some tax strategies to have the company pay me for things? Examples are can the company pay me, say $8/day for the option of renting my car on call, such as if the business must go to the post office or something. Could the company therefore write me an annual check for $2920 and therefore that wouldn't be taxed?
3) Could the company write me a check for $3600/yr ($300/month) for healthcare/dental/video allowance as an employee benefit and then I as the employee have the option of really spending it on that or not. So that's another $3600 coming to me tax free.
4) What about an SEP. Is this a good idea? How could I do this?
5) Given that I basically have no inventory and I'm the only employee and money only comes in through paypal, and then transferred to my bank, is another program like quickbooks actually necessary for me?
I'm looking for the best advice to help lower my taxes as well as comply with the law. If you are very knowledgeable about taxes and accounting, please bid on my project. I put the project duration as ongoing because I may want to ask several questions, especially around tax time, which for me, really is four times a year.