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4 Replies Last post: Mar 13, 2008 5:28 PM by Lighthouse24

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What Approach To Take To Be Compliant?

Mar 13, 2008 3:37 PM

Professional

Godspeed 4 posts since
Mar 13, 2008

I am an Entrepreneur and IT professional that has started an Information Technologies firm. I put this business in my friends name to ride around a contract that could not possibly hold in court, but did this; just to be safe. I am needing to know a few things that I've never really seen clear answers on. If you guys could help by any means, I would highly appreciate it.

Question 1 + 2:
I went through the LLC. Company to create my LLC's (mainly because I had zero clue on how to open an LLC. (S Corp.)). My question is: why I am still not up to compliance (as stated by them). I have articles of business (I think they are called "Articles of Incorporation", I have My name officially registered with the State and have an EIN. I also have my bank account (BOA). What do i officially need to be legit? They tried to charge me 100 bucks for some business paper, that which; I have no clue what in the world it was. Is this a scam or is it my ignorance of the subject?

Question 3:
How do I hire myself? Basically, I am trying to figure out how to hire myself as an employee (I made someone else the president as stated above). I want to hire myself and a few employees as well. I want to be a full on employee and the other employees to be sub contracted. Paperwork is bananas; any guesses?

Question 4:
I have to file my taxes for the company by the 15th of March, 2008 (something like form 2020? not sure..) I am not paying $250.00 when I didn't claim anything last year (I just started in November 07 and was informed to not put anything in the business name until after the new year). Is there anybody that could pull this off for cheap?

Again; any help will be highly appreciated.

Tags: business_start_up, business_start_up_accounting, business_management, taxes Report as inappropriate

Mogul

Lighthouse24 2,396 posts since
Oct 10, 2007

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1. Re: What Approach To Take To Be Compliant? Mar 13, 2008 4:37 PM

#1 & #2: I can think of a variety of things this could be -- registered agent fee, annual filing fee, local business license fee, sales and use tax permit/deposit, franchise fee, etc. There's not enough to advise you.

#3: Just from the content of your post, it sounds like you might want to take a step back before hiring yourself or other employees and do a LOT of reading and/or get some professional guidance. A one-person operation mainly deals with the IRS at the federal level -- but once you start hiring employees, your tax obligations get exponentially more complex, and you become subject to regulations and oversight from other federal agencies (OSHA, Labor Department). Also, you have a lot of state requirements to comply with (unemployment, workers comp, etc.). You may have started up a business without totally knowing what you were doing (and I don't mean that to be insulting -- I did, too), but you really don't want to hire employees until you thoroughly understand the laws involved and the obligations it entails.

#4: There are really only two choices for your income tax preparation due 3/17/08 (since the 15th is a Saturday) -- (1) go to http://www.irs.gov/businesses/index.html and start reading, then post specific questions if your find some portion of your tax prep efforts confusing, or (2) hire a professional to do it for you. (If someone qualified could do my corporate taxes for $250, I'd pay it in a heartbeat.)

Hope this helps. Good luck!

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SCORE

LUCKIEST 7,935 posts since
Aug 6, 2007

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2. Re: What Approach To Take To Be Compliant? Mar 13, 2008 4:49 PM

What Approach To Take To Be Compliant

Every person in business should have an Accountant, a lawyer and maybe an Insurance Agent.
Yes it costs money for a professional. It also costs money to be in business.
The professional will save you money and do it right over time.
Lighthouse always has good answers.
There is also "dublincpa" who has good tax advice.
Good lick, LUCKIEST

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Mogul

dublincpa 165 posts since
Jan 29, 2008

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3. Re: What Approach To Take To Be Compliant? Mar 13, 2008 5:17 PM

File Form 7004 to get an extension. Most likely, any return that is rushed by you or a paid preparer will be less than high quality.

Since you indicate that you filed 8832 and 2553, the extension will give you until 9/15/08 to file Form 1120S. If you have a profit you will need to make your 1040 payment by 4/15/08. You can use Form 4868 for a 1040 extension of time to file NOT time to pay. That would give you more time to get your act together to do it yourself or pay someone to do it.

Good Luck. All forms available at www.irs.gov.

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Mogul

Lighthouse24 2,396 posts since
Oct 10, 2007

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4. Re: What Approach To Take To Be Compliant? Mar 13, 2008 5:28 PM

in response to: dublincpa

Oh, yeah . . . I forgot about door number three - file for an extension!

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