# How do i invest my earnings



## neto45 (Nov 25, 2010)

When i start making money, how and where should i distribute the earnings?

how much do i stay with? how much do i leave to re- invest?


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## proworlded (Oct 3, 2006)

I think this is a question that is better asked of a financial adviser rather than on the forum.


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## kimura-mma (Jul 26, 2008)

It depends on what your goals are for your business. Are you just trying to make some short term cash? Or are you trying to build a sustainable business?


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## neto45 (Nov 25, 2010)

Sustainable business


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## kimura-mma (Jul 26, 2008)

How much is it going to cost you to produce an inventory of product?

How much is it going to cost you to sell through that inventory?

What is your intended markup on your product?

Based on your expenses and markup, how much profit will you have after selling out your initial inventory?


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## binki (Jul 16, 2006)

neto45 said:


> When i start making money, how and where should i distribute the earnings?
> 
> how much do i stay with? how much do i leave to re- invest?


If you are not a C-corp you cannot have retained earnings so any profit not spent will be taxed on your personal tax form. If you spend the money (which would eliminate your earnings) you can use section 179 for depreciation and have the government pay for part of your equipment purchase.


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## neto45 (Nov 25, 2010)

by C-corp you mean LLC?


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## binki (Jul 16, 2006)

neto45 said:


> by C-corp you mean LLC?


By C-corp I mean C-Corp. An LLC is a flow through so any profits will be on your personal 1040. A C-corp is the only entity that can have retained earnings that do not go to your personal tax form.


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