|
Posted by Tony Cox on December 28, 2006, 12:07 am
Please log in for more thread options > ayeshahill@gmail.com wrote:
>> California C Corp taxes ...pls help
>>
>> My friend has a C Corp Startup Incorporated in California which
>> has no revenue only expenses.
>> Incorporated in Jan 06.
>>
>> Some details:
>> - This is is the first year of operation.. she recd some small
>> amount of funding.
>> - Calender year tax period.
>> - She took a small salary.
>>
>> What are the tax forms, schedules she needs to fill in and what
>> are the due dates - for federal and California taxes.
>> We are totally ignorant.
> I am not a tax pro, but as an owner of a small C Corporation
> in NY I know that if your friend's company was incorporated
> in January 2006 and she took any salary and has not yet
> filed any Federal tax forms, specifically Form 941 Quarterly
> Returns, and withheld income taxes from her salary and
> deposited that withheld tax to the IRS, she has already
> missed three deadlines. She probably also had an obligation
> to withhold and deposit taxes and file quarterly returns in
> California.
I believe this is the same person who posted earlier this
month saying her "friend" had paid herself money and not
withheld any taxes. The consensus work-around was to claim
the previous distributions as a "loan", issue a paycheck in
December & use the proceeds to pay back the loan. If so,
then she may well be able to stay within compliance.
> She should see an accountant this year, that is this week,
> and learn about her filing obligations.
Vic's response is spot on. You MUST get professional help
asap. You must also register with the CA EDD to get an
account number and forms to make CA filings. If you haven't
yet got an EIN from the IRS, then you'll need one of those
too, although I believe you might be able to file "applied
for" in the box where it would normally go.
NOTE: I'm not a CPA. But I have run a CA corporation and
hopefully this will help you understand the process if
you're desperate and cannot set up an appointment for
professional advice before the end of the year.
The first deadline is December 31. You must pay yourself by
this date, calculating whatever withholding you'll be
responsible for. This means you'll already have understood
the Fed and CA withholding requirements. Get on it right
now.
Your next important deadline will be Jan 15. This is when
you must properly deposit the federal taxes you will have
withheld from your December paycheck. CA will be keen to get
its share of withheld taxes too, together with unemployment
insurance and SDI. The EDD will tell you when these need to
be filed; I believe it is the end of January, but check with
the EDD.
Next, you'll file a 941 by Jan 31 reporting taxes withheld.
The EDD has something similar.
Then, you'll need to file W-2s. I think this needs to be
done by the end of February. The W-2 that gets issued ends
up on your personal tax return, but the corporation must
file copies with the IRS.
Corporate tax returns for calendar year filers are due on
March 15. Do this even if you aren't showing any net income.
CA has similar filing requirements, and don't care one jot
that you've not made any money -- they'll rip you for $800
at that time, I believe.
This all quick and dirty. Do yourself a favour and take
Vic's advice very seriously. GO GET PROFESSIONAL ADVICE.
These things must be taken very seriously. If you think
penalties for messing up your personal taxes are bad, wait
till you find out what they do to employers that mess up!
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap