Wyoming | It depends on how one structures their business.
If you structure your business with a goal of minimizing tax liabilities, then make astute use of depreciation schedules, re-investment, tax breaks carved out for social engineering, deferring income to future years to give you time to create expenses to bury the income, etc - you can "lose" money on an ongoing basis. Then there are issues of corporate organization, and how income is distributed from those organizations, ie, whether income passes through to you, the business owner, or stays on the corporate balance sheet.
What you've "heard" is meaningless if you get into a situation with the IRS. Your time would be better spent actually reading and understanding the Internal Revenue Code. |