Sole prop then incorporated - which form(s) to file?

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Subject Author Date Sole prop then incorporated - which form(s) to file? dude 11-13-2006  Re: Sole prop then incorporated - which form(s) to... Phil Marti 11-14-2006  Re: Sole prop then incorporated - which form(s) to... John H. Fisher 11-14-2006  Re: Sole prop then incorporated - which form(s) to... Bill Brown 11-14-2006  Re: Sole prop then incorporated - which form(s) to... Harlan Lunsford 11-14-2006  Re: Sole prop then incorporated - which form(s) to... Paul Thomas, CPA 11-14-2006  Re: Sole prop then incorporated - which form(s) to... Victor Roberts 11-14-2006  Re: Sole prop then incorporated - which form(s) to... CMS, VA CPA 11-14-2006  Re: Sole prop then incorporated - which form(s) to... L K Williams 11-14-2006  Re: Sole prop then incorporated - which form(s) to... dude 11-15-2006
Posted by dude on November 13, 2006, 8:09 pm Please log in for more thread options I was a sole prop for the first 7 months of this year, then incorporated effective 1 August. Do I file as a sole prop or C corp for 06? Thanks in advance! -- jeff << ======================================================= >> << 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. >> << ======================================================= >> Posted by Phil Marti on November 14, 2006, 8:48 pm Please log in for more thread options > I was a sole prop for the first 7 months of this year, then > incorporated effective 1 August. > > Do I file as a sole prop or C corp for 06? Yes. Sole Prop through July and then the corporation take over. -- Phil Marti Clarksburg, MD << ======================================================= >> << 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. >> << ======================================================= >> Posted by John H. Fisher on November 14, 2006, 8:48 pm Please log in for more thread options dude@thenet.com wrote: > I was a sole prop for the first 7 months of this year, then > incorporated effective 1 August. > > Do I file as a sole prop or C corp for 06? Your sole proprietorship would be reported on Schedule C "Profit or Loss From Business". As an employee of the corporation, which files its own return (1120), you'd report income, received as wages, on the Wages line of your personal tax return. If the Corporation were to issue dividends, they would be reported as such on your personal tax return. The C Corporation would file Form 1120 to report its income, expense, and tax (if any).. A "short year" would be reported on March 15th, 2007. If you have a tax year, other than that which begins on 1/1 and ends on 12/31, your return would be due on the 15th day of the third month after the end of your tax year. If you were to be filing as an S-Corporation, the above guidance would be somewhat different!!!-:) << ======================================================= >> << 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. >> << ======================================================= >> Posted by Bill Brown on November 14, 2006, 8:48 pm Please log in for more thread options dude@thenet.com wrote: > I was a sole prop for the first 7 months of this year, then > incorporated effective 1 August. > > Do I file as a sole prop or C corp for 06? Both. You will attach a Schedule C to your form 1040 for the 1st 7 months of the year and your corporation will file a form 1120 for it's first year of operations beginning on August 1. I strongly urge you to consult with a local tax professional who specializes in small business tax issues. << ======================================================= >> << 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. >> << ======================================================= >> Posted by Harlan Lunsford on November 14, 2006, 8:48 pm Please log in for more thread options dude@thenet.com wrote: > I was a sole prop for the first 7 months of this year, then > incorporated effective 1 August. > > Do I file as a sole prop or C corp for 06? I assume you kept proper books for the 7 months you were operating as a proprietorship so no problem there. But when the corporation was formed, did you do what is necessary to transfer property, purchase stock, have a first meeting, elect officers, etc? There are times we've seen where a person gets an attorney to form a corporation, but that is all that is done. The corporation must have a proper set of books. Talk with your attorney first and your accountant, next. Or if you dont' have an accountant, hire one. ChEAr$, Harlan Lunsford, EA n LA << ======================================================= >> << 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. >> << ======================================================= >> Similar Threads Posted Want to maintain Sole prop. history while converting to LLC later January 18, 2008, 7:33 pm Do we need to fill Schedule C for sleeping LLC (Sole Prop.) ? January 21, 2010, 11:17 pm Can I file 1040 as an amended tax form after I file a 1040A? August 24, 2009, 1:18 pm file form 1041? January 19, 2007, 1:01 am Where to file Form 5329? January 30, 2008, 4:09 pm Form to file just for rebate? 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