ForumsTaxes and Payroll

Up to All Forums

This Question is Answered

1 "correct" answer available (5 pts) 2 "helpful" answers available (4 pts)

5 Replies Last post: Dec 22, 2008 8:31 PM by eyeteam

Incorporating

Dec 15, 2008 7:53 PM

ljbusiness 3 posts since
Dec 15, 2008

If we incorporate our small business at this point in the year (December) Can it help us for the entire year of 2008 as far as taxes are concerned?

Tags: Report as inappropriate

LUCKIEST 7,912 posts since
Aug 6, 2007

1. Re: Incorporating Dec 15, 2008 10:19 PM

Incorporating, Welcome

It could. Tell us more or talk to your accountant

Report as inappropriate

ljbusiness 3 posts since
Dec 15, 2008

2. Re: Incorporating Dec 15, 2008 10:58 PM

in response to: LUCKIEST

I was hoping if we incorporate it would reduce out tax liability, the corporation would be a 15 % tax bracket and it would reduce our personal tax bracket also. I am not sure how that would work since we have not been paying ourselves a salary all year though. I think we would also be able to claim 100% of our medical expenses.

Report as inappropriate

Elite1 64 posts since
Nov 14, 2008

3. Re: Incorporating Dec 15, 2008 11:08 PM

If your question is...Can we claim our entire 2008 income as a corporation if we incorporate in December? The answer is no.

You start reporting corporate income on your corporate tax return starting with the effective date of incorporation. (If you report on a calendar year basis...and you incorporated today, you would file a short-year return...reporting 2 weeks of income and expenses on a corporate return.) Probably wouldn't be very beneficial. I would need more information to help you further.

Did I understand the question clearly?

Have you talked to your accountant?

Tanya
Elite Financial Services, LLC

Report as inappropriate

ljbusiness 3 posts since
Dec 15, 2008

4. Re: Incorporating Dec 16, 2008 1:12 AM

in response to: Elite1

Thank you that answered my question.

Report as inappropriate

eyeteam 16 posts since
Dec 22, 2008

5. Re: Incorporating Dec 22, 2008 8:31 PM

Go to www.gosmallbiztoolbox.info to answer your small business needs.

Report as inappropriate

Bank of America, N.A. Member FDIC. Equal Housing Lender

Bank of America is not responsible for user posts and other user content appearing on this website and does not endorse or guarantee the perspectives, the advice, the users, the businesses, or the products or services sold by any users or businesses that appear on this website.

ForumsTaxes and Payroll

This Question is Answered

Incorporating

Dec 15, 2008 7:53 PM

More Like This

Most Recent Forum Posts

Legend