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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?

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LUCKIEST 7,932 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

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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.

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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

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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.

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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.

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ForumsTaxes and Payroll

This Question is Answered

Incorporating

Dec 15, 2008 7:53 PM

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