ABSTRACT
There are numerous smart, legal ways that people can use to protect the profits and build personal wealth. Tax savings usually result from policies that incorporate things like health plans, complementary meals, uniforms, and any other items that have a tendency to slow or eliminate employee turnover. The big tax pay off is that if these conditions are met, what restaurant corporation pays for their living expenses is fully deductible by the corporation and tax free to them. Owners of incorporated restaurants are in an especially strong tax position. The tax law contains a special provision for small business. A restaurant owner usually incorporates to protect himself from personal liability for the debts of the corporation and to get the tax breaks that go with the corporate form. The payments offset other income tax with holding, the employees' share of Social Security tax, and the restaurant's share of Social Security tax, in that order.
