Hello,
Last month, my spouse and I set up a LLC in MA. I am working on a corp-to-corp contract (providing computer consulting services) with a client. We have been billing the client every week (but ahem.. have not seen much of the green stuff come in yet - they pay out Net 30 - I hope!).
In any case, here are my questions:
Thanks for your help!
Bonbaby
Last month, my spouse and I set up a LLC in MA. I am working on a corp-to-corp contract (providing computer consulting services) with a client. We have been billing the client every week (but ahem.. have not seen much of the green stuff come in yet - they pay out Net 30 - I hope!).
In any case, here are my questions:
- I guess I am both an employee and an officer of the company. Do I have to run payroll monthly, or can I wait till the client actually pays up, and then run payroll for a few weeks at a time?
- I am still undecided on the BOA payroll product, vs. Quickbooks online (which is free). Any recommendations?
- So far, most expenses (corp setup etc.) have been out my personal credit card. Do I have to "officially" file an expense report to claim back the money from the company (once the client actually pays up!)?
- We want to elect to be an S Corp. From what I understand, this means at the end of the year, any "profits" or non-distributed reserves will be taxed to us as "regular busoness income". Is this correct?
- When we run payroll, I plan to file additional taxes based on the amount of money coming in. Should the company still file estimated taxes, or would my "extra" tax withholding be enough?
- This is a very short term contract. There is a possibility that I will go back to working full-time on W2 after this contract. Can I still deduct a laptop as a legitimate expense (I plan to use this laptop for work at my client site). Not sure what will happen to the corporation if I go back to working W2.
Thanks for your help!
Bonbaby
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