Full Version: EJ Hot Topics
From: Engravin' Dave (DATAKES) [#5]
6 Apr 2007
To: John (ICTJOHN) [#4] 7 Apr 2007
John,
You are partially correct. If you register in your state as a corporation and successfully file Form 2553 with the IRS, you can elect to become an S corporation which treats your profits as personal income.
If you are a stockholder of an S corporation, at the end of the year your accountant will provide you with a Form 1120 that reports the unappropriated retained earnings of the corporation, which you will plug into your personal tax return and be liable for as taxable income.
S corporations do not pay a corporate tax. C corporations get the double tax that you mentioned.
From: John (ICTJOHN) [#6]
7 Apr 2007
To: Engravin' Dave (DATAKES) [#5] 7 Apr 2007
Ah, yes, I did not address all corporation entities.... :-$
as you can see, that is why I never have played an Accountant on TV :O)
currently we are set up as an LLC, we are thinking an S Corp may be the next logical step...... I will NOT be the one doing the Due Diligence!
:>
From: Toni (TONI56) [#7]
7 Apr 2007
To: John (ICTJOHN) [#4] 7 Apr 2007
John,
Yes we are an S Corp. Too much detail & forms to file monthly or quarterly for me to remember, that's why we have a CPA to keep things straight.
And keep ME out of jail.
From: John (ICTJOHN) [#8]
7 Apr 2007
To: Toni (TONI56) [#7] 7 Apr 2007
And keep ME out of jail
I fully understand that...............
It just drives me crazy knowing the amount of taxes we pay for not only income taxes but all of the equipment, file cabinets, chairs, computers, software...etc
:'-(
From: Engravin' Dave (DATAKES) [#9]
7 Apr 2007
To: Toni (TONI56) [#7] 9 Apr 2007
Call me a nerd, but I love doing the books, messing with all the tax forms, etc. Fortunately, my software saves me enough time that it makes it viable for me to keep doing it in house.
One thing I don't like doing is paying all of the taxes. Grrrrr! :@
EDITED: 7 Apr 2007 by DATAKES
From: jeanettebrewer (JEANETTEBREWER2) [#10]
9 Apr 2007
To: Engravin' Dave (DATAKES) [#9] 9 Apr 2007
From: Engravin' Dave (DATAKES) [#11]
9 Apr 2007
To: jeanettebrewer (JEANETTEBREWER2) [#10] 9 Apr 2007
From: John (ICTJOHN) [#12]
9 Apr 2007
To: Engravin' Dave (DATAKES) [#11] 9 Apr 2007
Dave,
I think the colors for Jeanette's emoticon should be Blue & Silver.....
Go Cowboys!
~