[ajug-members] OT: consultant incorporation tips / resources?
chall at cfhdev.com
Tue Nov 8 08:59:46 EST 2005
Whether to become a c-corp, an s-corp, an LLC or stay unincoporated completely depends on you scenario and future goals of your business. There's a book on choosing the right entity in the Rich Dad series that helped me figure out my situation (LLC). You can file for you EIN at irs.gov and receive it online. I highly suggest talking with a tax pro or reading some books on all the interesting and odd rules. You can setup to file your quarterly taxes online as well. The key to deducting is to have a papertrail for everything. It can seem overwhelming at first but just keep reading and the proper practices will become second nature. Good luck!
From: Brian Lee [mailto:brian_a_lee at hotmail.com]
Sent: Tue Nov 08 08:46:30 2005
To: ajug-members at ajug.org
Subject: RE: [ajug-members] OT: consultant incorporation tips / resources?
When I set up my corp, I just googled for "how to form a corp". But here's
some advice that I collected and used:
Buy QuickBooks, it's $200 but key to saving money on accounting fees.
Set yourself up as a corp. The GA Secretary of State has a good web site
explaining how to do this. It only costs about $110+ $10/year.
Immediately after getting your corporate papers back from GA, file with the
IRS as an S-corp. This is really important as you must do this within 90
days. Mail your application through certified mail.
It's important to incorporate in a town that doesn't require a business
license. This will save you $500 or so.
Keep all your requires in Quickbooks so it will generate your quarterly 941
and your annual 940.
Make your withholding deposits each money for IRS and keep a buffer for the
end of the year.
Track your expenses carefully. Equipment, services are expensed 100%. Travel
is tricky, just make sure you can show how it is for business and not a
hybrid with personal (i.e. don't bring your wife and kids). Meals get
expensed at 50%. Quickbooks keeps track of all this stuff for you, but it's
good to know.
Theoretically all this stuff usually nets you $5-10/hour.
>From: "Curt Smith" <chsmith at speakeasy.net>
>To: ajug-members at ajug.org
>Subject: [ajug-members] OT: consultant incorporation tips / resources?
>Date: Tue, 08 Nov 2005 07:51:49 -0500
>Off topic question but related to some on this list:
>I'm working as a consultant getting paid via W2 through my agency. I'm
>wanting to move to a corp-to-corp relationship where I manage my taxes etc
>and also be able to take advantages that I can't under W2 like create my
>own retirement account (SEPT/KEOG ??), deductions for professional
>equipment like computers, education, travel etc).
>I'm looking for help and resources? Local SIG's, books, websites etc?
>Your tips and issues you've run across.
>Maybe an off list discussion?
>csmith at javadepot.com
>ajug-members mailing list
>ajug-members at ajug.org
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ajug-members at ajug.org
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