AboutRichard Fritzler Expertise I am in the business of tax planning for business owners. Our company helps business owners structure so that they can be reduce the taxes that they owe, making them far more profitable.
Experience Since 1986 I have been helping successful business owners reduce taxes, protect assets, and limit their liability. The company is Owelesstax, incorporated at www.owelesstax.com
Organizations National Small Business Owners Association.
Nevada Association of Listed Resident Agents.
Citizens Legal Association
The Business Owners Institute
Publications Contributing author to "The Corporate Standard Newsletter".
I am also a writer for an email newsletter about business
Googlegroups/Successfulbusiness
I am also an Expert in the areas of Tax Law, Retirement Planning, and Estate tax issues.
Expert: Richard Fritzler Date: 8/23/2007 Subject: Personal Holding Company
Question What is a personal holding company? If I incorporate myself for insurance purposes, will I be considered one? I am a computer programmer.
Answer A PHC is any corporation that receives 60% or more passive income AND the 5 largest stockholders own 50% of the stock.
Passive income is: Rents, Royalties, Dividends, and Interest.
As a Computer programmer you would not be construed as a "Personal Holding Company".
You could be construed as a "Personal Service Corporation". A PSC is any corporation that effectively receives it's income from services provided by the employees and is effectively owned by the Employees.
I think you can see how this would apply to you. Both of these categories pay an additional 15% federal tax. Instead of a 15-34% tax scale it would be a 30-49% tax scale.
Both of these classifications is worth avoiding.
And under all circumstances there are ways to avoid them.
Call me.
Richard Fritzler
www.owelesstax.com
phone 800 590-6612
