Need a Legal question answered

[acecycleins]

Originally Posted by seruzawa

Laws differ from state to state. You better get some real advice before you screw yourself up.

Oh, I will. Mostly, I just need to shoot ideas and see what bounces. Just trying to make sure that my customers are taken care of.

[longride]

Originally Posted by acecycleins

Oh, I will. Mostly, I just need to shoot ideas and see what bounces. Just trying to make sure that my customers are taken care of.

Why worry? None of the current administration worried about tax laws. Maybe Obama can nominate you to a Cabinet post!

[A Star Ride]

Originally Posted by acecycleins

In a "sort of" kinda way. The point is that J and I need to join forces to allow survival. His company is 25yrs old and has no debt (to speak of). Mine has credit card debt that is higher than the projected commisions for 2010. Kim has to personally bankrupt (it's all in my sister's name- ya'll try doing that with your sisters. betcha can't). We need to desolve the company, but those cards obviously won't allow it without payment in full. Well, both J and I don't have that type of cash handy. So, trying to make one company disapear without it effecting the tax and debt situation of the other is tricky. But if I keep the ACE part alive for the debt purposes I can pay the debt over time.
That's my theory, anyway. But what the hell do I know about the law.

I don't know corporate law, but if you continue to operate under ace (apparently at a lower profit margin due to the debt) are you eligible for any (corporate) tax deductions for the debt repayment. Show a loss if you can & there's no income. Whereas if you shift everything profitable to another operating name then you'll be paying the old company's debt with money you paid income tax on. Can you work at, say a 15% lower salary on paper & have the new operating company pay that last 15% of your salary toward the old companies debt, therefore saving you paying the income tax on that dollar amount, maybe even qualifying you into a lower bracket for 2010. Couple ideas, hope they help.