What entity should I be when I grow up?
WebGuy,
Are you trying to find out what to do this late in the year to fix your S-Corp.? Or, are you trying to find out if you should BE an S-Corp. or another entity instead? What to do, payroll, filings, etc., is a looong answer. What to be is an answer only you can decide based on many other issues besides tax issues. We can tell you the tax and filing consequences of possible choices. But, no one should make a major decision such as what business entity should he form based on only tax issues. What's common in your industry? What do your clients expect? And on and on. You're asking us legal and web-related industry questions and then griping at us when we don't rush to help you. We outlined the tax issues and filing issues in remaining as an S-Corp. and in the possibility of a SMLLC. Did you receive income as John Doe or WebGuy, Inc.? Will you receive Forms 1099-MISC in your social security number or in your S-Corp.'s EIN? Check your secretary of State's website for information on dissolving an S-Corp. or if it needs to be dissolved if it had no activity. (In CA and NY and other states, corps need to be current before they're allowed to dissolve.) Ask us a specific tax question, and we'll answer, maybe give multiple opinions. But, a "What do I do now?" question asked over a year after you formed the S-Corp. is asking us to cover a couple of tax year's worth of information in a paragraph! Do you want to spend the time keeping a Balance Sheet as well as your Income/Profit & Loss Statement? Do you want to spend the time to prepare a Form 1120-S and whatever your state form is, as well as your own Form 1040? Do you expect to have investors or a buyer for the company and not want them to see your Form 1040 so don't want a Schedule C for your company but a separate Form 1120-S instead? What do I do now? is a little broad. Are you remaining an S-Corp.? Then pay yourself and file 4Q 940, 941, W-2, W-3, prepare your P&L and Balance Sheet and Form 1120-S, buy The Tax Book, download publications form IRS.gov, visit your secretary of state's website, and if you want to grow your business instead of preparing government forms, then follow the advice you were given to find a local tax advisor you feel comfortable working with. Good luck.
WebGuy,
Are you trying to find out what to do this late in the year to fix your S-Corp.? Or, are you trying to find out if you should BE an S-Corp. or another entity instead? What to do, payroll, filings, etc., is a looong answer. What to be is an answer only you can decide based on many other issues besides tax issues. We can tell you the tax and filing consequences of possible choices. But, no one should make a major decision such as what business entity should he form based on only tax issues. What's common in your industry? What do your clients expect? And on and on. You're asking us legal and web-related industry questions and then griping at us when we don't rush to help you. We outlined the tax issues and filing issues in remaining as an S-Corp. and in the possibility of a SMLLC. Did you receive income as John Doe or WebGuy, Inc.? Will you receive Forms 1099-MISC in your social security number or in your S-Corp.'s EIN? Check your secretary of State's website for information on dissolving an S-Corp. or if it needs to be dissolved if it had no activity. (In CA and NY and other states, corps need to be current before they're allowed to dissolve.) Ask us a specific tax question, and we'll answer, maybe give multiple opinions. But, a "What do I do now?" question asked over a year after you formed the S-Corp. is asking us to cover a couple of tax year's worth of information in a paragraph! Do you want to spend the time keeping a Balance Sheet as well as your Income/Profit & Loss Statement? Do you want to spend the time to prepare a Form 1120-S and whatever your state form is, as well as your own Form 1040? Do you expect to have investors or a buyer for the company and not want them to see your Form 1040 so don't want a Schedule C for your company but a separate Form 1120-S instead? What do I do now? is a little broad. Are you remaining an S-Corp.? Then pay yourself and file 4Q 940, 941, W-2, W-3, prepare your P&L and Balance Sheet and Form 1120-S, buy The Tax Book, download publications form IRS.gov, visit your secretary of state's website, and if you want to grow your business instead of preparing government forms, then follow the advice you were given to find a local tax advisor you feel comfortable working with. Good luck.
Comment