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C-corp For 2008

Discussion in 'Asset Protection/Taxes/Legal' started by Strategy, Dec 27, 2007.

  1. Strategy
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    Strategy New Contributor

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    HELLO... how are you doing

    I recently formed my c-corp and have a few questions?

    1) I formed it in GA and plan on getting an office in GA in the near future but for now to obtain my fed EIN I had to give my house address in AL... Does that make me liable for anything tax wise that I wouldn't normally be if I had provided a GA address?

    2) I read the whole federal code on Corporations and seen that a "PERSONAL SERVICE CORPORATION" if it applies gets taxed at 35% regardless! My company will be providing many sources of revenue but one of the main one will be music production for artists, commercials, films, etc., under the guidelines of PSC's it said "PERFORMING ARTS". would this be considered performing arts an what is the best thing I should go about doing? Like all things I seen that there is a way around everything but I'm just curious.

    3) I've done major research but it always seems like there isn't just a straight answer on what all you have to provide tax and legal wise. Can someone PPLLLLEAAASE break it down for me. I know you have Federal Taxes, State Taxes, but what else needs to be done to remain compliant? I read about having to pay unemployment taxes on a corp even if it is just you. It just seems like alot of things are getting taxed on. Someone please help. Thanks
     
  2. andviv
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    andviv Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    I think you are in that point where you MUST pay for a professional adviser.
    I am moving this thread to the Asset Protection / Taxes / Legal section.
     
  3. Diane Kennedy
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    Diane Kennedy Bronze Contributor

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    I agree with Andviv. You need to have a professional advisor. First, though, you need to learn how to speak his/her language.

    Get 4 more posts and take advantage of MJ's offer for a free copy of my book, "Loopholes of the Rich." You'll find a number of chapters specifically dealing with C Corporation taxation.

    There are a number of issues contained in your post:

    Nexus - where do you earn your income and where do you pay tax?

    Taxes - When does income tax come into play and when do payroll taxes? (You have federal income tax and federal payroll taxes confused in your post)

    Accounting - You will need to have double entry bookkeeping for your C Corporation. That means a bookkeeper or you're going to need to get up to speed on the bookkeeping. (I like QuickBooks for that)

    C Corporate pitfalls - you need to beware of PSC (as you've discovered) - again though, get some more vocabulary and basic understanding - I have a section on this issue in my book, Personal Holding Company (PHC), Accumulated Earnings tax....there's more, but that should give you an idea of some of the issues.

    Entity Choice - you jumped into a C Corporation. I'm not convinced that's the right entity for you. There is a lot of homework that needs to be done first.

    Who do you get your advice from? There are some knowledgeable people on this forum, so this isn't a criticism of anyone here. But, in general, posting such important questions about specialized fields on an open forum is dangerous. You don't know who is giving you advice.
     
  4. Strategy
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    Strategy New Contributor

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    Thanks I will surely check that book out. I definitely need a professional advisor but it seems hard to find the right one I would need in a situation like this. Majoirty of the people I've contacted just do book-keeping and other services such as that.
     
  5. Strategy
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    Strategy New Contributor

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    I also would like my question answered if at all possible about the personal service corporation, would that be considered one?
     

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