I could reduce the amount of taxes

My after-tax income from my small business is greatly reduced by the incomes taxes I pay each year. A friend of mine told me I owe by shifting my income elsewhere. Is that true?

kkkrishnakk said:   My after-tax income from my small business is greatly reduced by the incomes taxes I pay each year. A friend of mine told me I owe by shifting my income elsewhere. Is that true?
I love the English language and I believe myself a master at grammar. But I cannot for the life of me figure out how one would go about dissecting this sentence. Can you translate what you mean into simplefolk talk?

Yes

bbmak said:   Yes I am a little bit confuse here.
Your NI is decreased because you pay tax. Well everybody NI is decreased because of paying tax.
You should tell us what are you first. a c-corp, s-corp, llc, or etc... Without knowing what are you, PPL can't help you much.

No, you cannot shift your income to another company to avoid tax, and I don't know how you can do that. However, If you do that, IRS will raise a huge red flag because your company earns money but don't pay any tax.

I guess that your friend is talking about consolidated reporting. When one company has operating loss, can offset sub company with operating profit.
I highly doubt it's that complex.

He likely has other non-business income that he reports separately; they're thinking that if run through the business, whatever that money is spent on can then be deducted. Like if he had $1k interest income that he uses to pay rent, he has $1k taxable income. But if 'the biz' earned that $1k interest then used it to pay rent, the biz could deduct the rent payment leaving him with $0 taxable income.

Sorry OP, but it doesn't work that way...

I see too much of this "if I run personal expenses through a business entity I can claim these expenses as business deductions" nonsense here on FWF. Krishna, while English is my third language, I do make the effort to write coherently. I may not always succeed, especially when I'm really drunk, but at least I try. Dude, you're not even trying.