Discussion:Corp newbie Qs
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Discussion Forum Index --> Accounting Questions --> Corp newbie Qs
| 16 May 2008 | |
| First, I was thrilled to have come across this forum on google.
I would really appreciate if my following Qs are clarified and let me know what would be a best/optimal way to go My situation: I was a DBA last year, and have incorporated this year (Delaware-based). My reasons for incorporation were _not_ based on revenue/income that I am going to generate this year, but for liability reasons as my product would be under test with a non-paying customer. As such this yr I dont expect revenue. Inc-ed on March 18th, so I still can opt for S-corp,[I guess IRS gives 90days grace period]. Right now its in C-corp. I am the sole shareholder more than a Mil penny shares. I am looking to raise capital from angels and VCs. Thats my situation. My Qs: 1. Can I add money to corp bank acc without issuing myself shares? 2. Do I need to draw salary this yr? If so, what is the minimal amt that I can pay myself? if not, thats good 3. does it make sense to s-corp and later switch if a VC/investor is interested? How easy is it? 4. A software Q: I have peachtree accounting pro software purchased last year. Can I use that for current corp accounting? many many thanks for all of your feedback in advance with best regards | |
| 16 May 2008 | |
| 1) This forum is for tax and accounting professionals, not Do It Yourselfers.
2) You have no profile, which leads us to believe that you are a taker only, and not a giver. 3) These are all great questions for you to ask your tax professional. What did he/she say? | |
| May 16, 2008 | |
| 1) Yes, but issue yourself the shares.
2) You should pay reasonable wages for the work being performed. Don't look for the minimal amount, look at what the average person would make in the same capacity. Your wages should reflect the work you do, not your role as "President" of a company or the like. 3) You could switch to back to a C-Corp, but you'll have to stay that way for at least 5 tax years after that if you want to consider switching back. The IRS doesn't want people changing this every year. 4) If it is handling your present needs, sure. | |
| 17 May 2008 | |
| Thanks a bunch LemRI. Appreciate your wisdom.
To moderator: At the risk of taking your flame-bait; I give back to community more than what your narrow "Accounting principles" recommend. If a Q doesnt fit the forum, best is to ignore or be deleted by "Moderator". If you folks want to have some entertainment, by all means feel free. My gentle apologies for being quick to post. Okdoks, I get educated before I take up anything, thanks to Internet and Web freedom. So long. | |
