Discussion:Start of Corporation Business
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Discussion Forum Index --> Advanced Tax Questions --> Start of Corporation Business
Discussion Forum Index --> Tax Questions --> Start of Corporation Business
IDrinkYourMilkshake (talk|edits) said: | 18 March 2008 |
| Anyone ever have audit issues with establishing business start date for a corp? If so, what did the IRS look for? | |
PHIL MOODY (talk|edits) said: | 18 March 2008 |
| I have had them ask for the "organizing" documents, and minute book, which typically includes the filing with the secretary of state, the charter, etc. All of which have dates on them. | |
IDrinkYourMilkshake (talk|edits) said: | 18 March 2008 |
| Right, but what if business starts a year after the organization date? | |
PostingFromWork (talk|edits) said: | 18 March 2008 |
| It depends a lot on what type of business it is.
If it were a restaurant, I would use the bank deposit for the sales from the first day open, the first invoice for perishible goods, newspaper clippings of the advertisments for the restaurant showing the opening date, pictures etc of the soft opening, etc, etc. If it were a sole shareholder bookkeeping shop, you need to prove when the client was ready, willing, and able to take on clients. Proof would be advertisements, client billings, EFIN and TCC acceptence, the date the client quit his day job to persue the business full time, computer program set up, etc. | |
| March 18, 2008 | |
| What's your real question? Wondering about an S election? If the corp is organized, but not started, the start is when a bank account gets opened, that's when stock is issued. | |
