Started LLC - Need Tax Advice
Just a little background. I am a designer and my partner is an architect. We have started our own business and for now we are handling drafting jobs to bring in some cash. We hope that once we have some cash we can use it as a down payment and start rehabbing houses. My question is, we are just putting the money in a bank account and not touching it. We are not paying our selves and the company is set up with no employees earning money. Someone told me that we would be taxed at a high rate on the money sitting in the account. Is this true? If so, does anyone have any better suggestions on how to hang on to this money until we need it. Thank you for any advice offered.
[addsig]
dec,
You are making it much more complicated, then it really needs to be. In California, all contingencies, need to be explicitly removed by the buyer, for the contract to continue to exist. If contingency is not removed, then the contract is simlply cancelled and the deposit goes to back to buyer. Good luck with figuring everything out.