How Are Birddogs Taxed?
I have set up a professional birddog company(S-Corp), where we refer real estate leads to investor sand get paid a fee for the lead given the investor closes on the deal.
How would this business income be taxed?
How would this business income be taxed?
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By the way, you file an 1120 S tax form (informational return), but the profit/loss flows through to your 1040. With very few exceptions, the S Corp itself would pay no tax. Corporations are also exempt from the 1099 requirement when receiving $600 or more in a year (except for attorneys--even if they have a Professional Corporation--if you pay your attorney $600 or more in a year, you must give your attorney a 1099). Not even the IRS trusts attorneys.
[addsig]
just watch out for underpayment penalty.
As I recal the they calculation quaterly, so if you income is not linear over the year, you can get stuffed.