# Corporation v Sole Proprietership -taxes



## remraf (Jan 26, 2012)

Hi, 

I am new here andI just want to say I have learned more than I ever knew just by reading these boards, so thank you all!

I want to start a business so I can sell to any refiner I want.I am concerned how these sales will be taxed, what documentation I need to keep, etc.


I know an LLC protects your personal assests. Do any of you have experiences, tips, &/or advice to share about advantages and disadvantages of having a corporation, sole proprietership, or any other type of business entity? Especially concerning taxes, but any info that may be useful would be awesome.

Thanks!


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## texan (Jan 26, 2012)

Talk to a lawyer in the state you live....CPA might be good also.

Texan


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## nickvc (Jan 27, 2012)

If the US is anything like the UK there are reasons some personal and some for tax / business reasons to be either depending on exactly what your plans are. My advice for what it's worth is talk to your accountant and outline the nature of your business and the potential earnings and expenses from that he should be able to give you advice on the advantages and disadvantages of either choice,you can form a private company or a partnership the choices are all there but only you can decide what the best option is for you.


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## Photobacterium (Jan 27, 2012)

i suggest talking to a coin dealer in your state that you know & trust.

they tend to understand a lot of the mind-set of gold-ologists and are in a position to recommend an attorney and/or accountant that can help you structure a venture that fits your own gold-ological profile.

in other words, many of them are kindred souls and there's a good chance they can help you by recommending good financial & legal experts to assist you.

in my own town, i would also add, one of the local firearms dealers. i know him from the gym, he's very pro-freedom, he knows the local attorneys & accountants.

perhaps you have a similar set of acquaintances in your area. personally i think those recommendations are worth more than looking in the phone book.


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## remraf (Jan 30, 2012)

Thank you all for the input!


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## jr81452 (Feb 23, 2012)

What state are you in?


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## GoldExchange (Mar 17, 2012)

Hello,

We are in CA and would love to get some help regarding the same topic. We're buying scrap gold and selling to a refinery. We have our CA Secondhand Dealer's License and all the city permits but we're still a bit stumped on the tax issues. The refinery that we go to has filled out Form BOE-230 for us which signifies that they purchase tangible personal property from us for the sole purpose of resale and nothing else, from what I understand this exempts us from any sales or use tax, or am I horribly mistaken?

Additionally, when it comes to income tax, will this tax be imposed on the the full purchase price of the metals + my profits? or will it only be on my profits after sold to the refinery?

Any other taxes I need to know about to make my day a bit more enlightening?

Thank you all!


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## jimdoc (Mar 17, 2012)

Please don't double post.
Thanks.

Jim


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## Smack (Mar 17, 2012)

For people reading this in the future that may have the same or similar questions, I suggest making an appointment with a licensed accountant.


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## Harold_V (Mar 18, 2012)

GoldExchange said:


> Hello,
> 
> We are in CA and would love to get some help regarding the same topic. We're buying scrap gold and selling to a refinery. We have our CA Secondhand Dealer's License and all the city permits but we're still a bit stumped on the tax issues. The refinery that we go to has filled out Form BOE-230 for us which signifies that they purchase tangible personal property from us for the sole purpose of resale and nothing else, from what I understand this exempts us from any sales or use tax, or am I horribly mistaken?


I am not an attorney, nor do I pretend to be one, not even on TV.

I am of the opinion that you are not wise to ask for legal advice on a forum that is read world-wide. You have no idea of the veracity of any of the responses you may receive, and could find yourself in a terrible situation because you trusted words that were possibly legal for the individual that offered guidance, but not necessarily for you and your location. 

You most likely can get all the answers you need by simply calling the county government, which you can do and remain anonymous, if that be your desire. 

Harold


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## Palladium (Mar 18, 2012)

Harold_V said:


> I am not an attorney, nor do I pretend to be one, not even on TV.
> 
> 
> 
> Harold



I pretend to be a refiner every now and then. :mrgreen:


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## acpeacemaker (Mar 18, 2012)

I used to receive a ton of tax questions while I played pro poker from people who wanted to start up. A good tax attorney is a way to go if your really unsure of what to do with many types of business. If ever at fault that would mean that he/she should have a fault in it as well. 
I've always heard the IRS doesn't care how you get the money just as long as they get paid. I helped take care of a mob boss in the federal medical pen at one time. He had all kinds of dirt on him, but the only thing they could get him with was tax evasion.

-Andrew


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## Harold_V (Mar 19, 2012)

Palladium said:


> Harold_V said:
> 
> 
> > I am not an attorney, nor do I pretend to be one, not even on TV.
> ...


Hell, Ralph, I pulled that one off for years! 

Harold


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## GoldExchange (Mar 19, 2012)

Harold_V said:


> GoldExchange said:
> 
> 
> > Hello,
> ...



Thanks for the heads up, we've already spoken to a CPA and an attorney and got our answers but we were just curious to see if anyone else had stumbled upon something that we hadn't already uncovered. It's not that we're not unwise, it's just that we're trying to take right direction and cover all our basis so no surprise mishaps would come our way. Thanks again everybody.


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## nickvc (Mar 20, 2012)

Your right to ask this is an unusual business that comes under various agencies and rules so the more bases you can cover to start the better, the one problem you don't want is trouble with municipal or national agencies of any sort that could cripple your ability to process or trade, it's better to have these problems at the start so they can be sorted and it shouldn't be a major headache in waiting. The fact that your trying to do the right thing from the start will be a plus factor should any new problems arise and help should be available even from the agencies themselves, trying to dodge various rules and laws never goes down well with the authorities.


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## gabe (Aug 14, 2012)

Hello Gents,
I work for a company that structures entities, my passion is mining and refining precious metals. In short make your hobby a business. Change your vocabulary from mine to company. Own nothing control everything. Limit personal liability. Follow the law. Remember there is a line of tax code implimented, written every day. So align your business with an agency or membership that maintains compliance. Let your company take its own responsibility for debt. Let it also build its own credit. In this way you are partitioned from risk, the same as rubber gloves and a mask to acid.
The cool thing is when we are insulated from risk we get brave. Like a football helmut. My company is buying a mine in a joint venture with other companies including the mill. On company credit. Thanks


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## dblades (Nov 27, 2013)

GoldExchange said:


> Hello,
> 
> We are in CA and would love to get some help regarding the same topic. We're buying scrap gold and selling to a refinery. We have our CA Secondhand Dealer's License and all the city permits but we're still a bit stumped on the tax issues. The refinery that we go to has filled out Form BOE-230 for us which signifies that they purchase tangible personal property from us for the sole purpose of resale and nothing else, from what I understand this exempts us from any sales or use tax, or am I horribly mistaken?
> 
> ...


If you don't understand enough about business and taxes to know what constitutes "profit", I doubt you'll ever have one.


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## niteliteone (Nov 27, 2013)

dblades said:


> If you don't understand enough about business and taxes to know what constitutes "profit", I doubt you'll ever have one.


A little harsh :shock: but honest.
Anyone owning a business, that doesn't understand what business "monies" are taxable, have no business running one. :roll:


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