I guess I`m mostly trying to figure out how much it would cost to have someone do a tax return for a corporation. and advice about how that all works. we started a corporation towards the end of last year, but haven`t done any business with it yet. I don`t think we should have to do anything with it for this tax season, but next year we will for sure, and I don`t think I`ll really want to mess with it by then. but it would obviously be good to make sure we keep the right kind of records this year.
When someone calls me and says the above, I ask them the following questions to make sure they do not have a reportable transaction, even though they feel they have "not done any business with it yet":
- What state did you incorporate in? This is because some states require an annual filing regardless of whether or not you did any business.
- Did you elect S-Corporation status? I always ask this so I know what type of corporation I`m dealing with.
- Did you do all the paperwork yourself, or did you hire an attorney or online corporation to filing your legal paperwork with the state? If so, you have attorney fees, which if reported you get to deduct. If you never file a return in the year you incurred the expense, you do not get to deduct it?
- Did you apply for a Federal EIN?
- Did you incur any expenses in researching this business? If so, you have expenses that are deductible ONLY if you file a return in the year of the expenses.
Then based on how those questions are answered, I usually have several more questions. Why not send me an email with your phone number and tell me when a good time to call you is and we can discuss this? There won`t be a charge for the phone call, if you`re worried about that.
Best wishes,
Gina
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Gina L. Gwozdz, CPA
http://GLGcpa.com
http://TaxTreasures.com