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    4 Replies Latest reply on Aug 21, 2008 1:19 PM by benbakelaar

    New S-Corp, Pl. advise

    FreeM96 Wayfarer
      Hi All,
      I am getting ready to form my new S-Corp. A bit of background - So far
      I have worked mostly as FT employee and contracted as a W2 employee.
      Minimal accounting/tax knowledge (but smart enough to sharpen our
      pencils if/when needed), we have a cpa who does our taxes. Here are
      some major confusion areas for me, pl. help:

      1. I am the only employee and founder of this Inc. I could put my hubby
      on it though he may not have any projects to work on (different work
      areas though both in technology). Any advantages to adding him as
      co-founder?

      2. I don't have projects lined up right away , but I am hoping mainly
      to get corp-to-corp projects after forming the Inc. My question:
      At what point should I set up payroll? How can i pay myself if my
      company is not making any money? I am planning to use Bofa's online
      payroll (any other recommendations welcome) to pay myself as an
      employee at that point, I am also the founder/CEO of the company.
      Can/Should I pay myself as the CEO and as the employee?
      How does the payroll thing work in between projects? Can I be salaried and not pay myself regularly?

      If someone can throw some light on the subject, I'd greatly appreciate it.
      Is there an experience S-Corp IT consultant who can outline the order in which they setup functions?
      Much anxiety,
      FM96
        • Re: New S-Corp, Pl. advise
          benbakelaar Newbie
          I have just recently set my own IT consulting practice up as a sole proprietorship. As I understand it, LLC, S-Corp, etc. only provide legal advantages, they are not recognized by IRS as a unique tax entity. Since it is just me, there was no need for payroll, and since all my work is over the web, there was no need for legal protections. Your situation may be different, but you may want to consider if it is necessary at this point to start a corp. I always thought you had to do LLC/S-Corp but then I talked to a financial advisor and got the real deal, at least for my situation.
          • Re: New S-Corp, Pl. advise
            LUCKIEST Guide
            New S-Corp, Pl. advise, Welcome

            Tell me more. Go to Members page and share some info.

            Everybody in business should have an Accountant and a Lawyer.

            You can also contact SCORE. SCORE is FREE and they can answer your questions.

            Good luck, LUCKIEST