Questions? What to do?

Posted by anna on April 17, 2006, 10:54 pm

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Questions? What to do?

My sister is trying her hand at a startup in Northern
California.

She has a C Corp. - incorporated - January 06. Only 2
shareholders. No income, only expenses.

What are her obligations wrt to Federal and CA state taxes?

Does she have to file any forms frequently during the year?

What about the end of the year?

Any taxes to pay?

State tax? or federal tax? to pay by April 17th 2006?

Pls help.

Thanks
Anna

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Posted by Stuart A. Bronstein on April 19, 2006, 12:37 am

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> Questions? What to do?

First of all, she should ask the accountant that recommended
that she incorporate. If she didn't ask, that may not be
the best way for her to do business.

> My sister is trying her hand at a startup in Northern

> California.

> She has a C Corp. - incorporated - January 06. Only 2

> shareholders. No income, only expenses.

> What are her obligations wrt to Federal and CA state taxes?

Same as anybody else's, except that California has a minimum
franchise tax of $800 per year that she has to pay. Whether
she makes any money or not.

> Does she have to file any forms frequently during the year?

Aside from tax forms there's a form called Statment of
Officers that has to be filed, I think every other year
unless there's a change in the officers.

> State tax? or federal tax? to pay by April 17th 2006?

Depends on her fiscal year. If it's the calendar year, she
files for 2006 in 2007. But her tax preparer would be the
best person to ask.

Stu

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
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<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by San Diego CPA on April 19, 2006, 12:37 am

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> Questions? What to do?

> My sister is trying her hand at a startup in Northern

> California.

> She has a C Corp. - incorporated - January 06. Only 2

> shareholders. No income, only expenses.

> What are her obligations wrt to Federal and CA state taxes?

> Does she have to file any forms frequently during the year?

> What about the end of the year?

> Any taxes to pay?

> State tax? or federal tax? to pay by April 17th 2006?

> Pls help.

Best advice is to contact a local CPA and/or attorney that
handles small businesses.

Since you're posting here and probably not interested in
doing that, spend about $20 on "Incorporating For Dummies"
book (the actual name name of the book is not exactly that
but it's something to that effect) and it will walk you
through the questions you've asked above plus a whole lot
more you haven't.

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>