Discussion:Sole Prop to new S Corp and new EIN
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Discussion Forum Index --> Advanced Tax Questions --> Sole Prop to new S Corp and new EIN
Discussion Forum Index --> Tax Questions --> Sole Prop to new S Corp and new EIN
Donniecastleman (talk|edits) said: | 17 February 2009 |
| Hi, this is one that Riley can answer with 90% of his brain tied behind his back. I had a client today that had a new S Corporation all year but ran his business through the existing EIN for his sole proprietorship. There was no payroll to the filer, as he didn't really start using the S Corp EIN until December but it's the same company, just adding an INC at the end. Only 3K was received on 1099's to the EIN of the sole proprietorship. Question, should I run all of the 250K through the S Corp and then pay the sole proprietorship a portion of the net profit or should I allocate the profit and loss on a month to month basis, effectively having the S corp just file for one month and the sole prop the other 11. It seems very appealing to me to file all of it through the S Corp as it could be less legal liability. I'm sure I've left something out so let me know what I need to add. Also, he has a SIMPLE plan set up through the new S Corp and wants the corp to contribute 3% to his maxed out SIMPLE contribution for 2008. Thanks for any advice! Also, we're setting up payroll for him for this entire year through the S Corp. | |
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