[ajug-members] accountant referal? OT: consultant incorporation tips / resources?

[Bill Siggelkow]

I use Kathy Aldenderfer of the Aldenderfer Group  
(www.aldenderfer.com). It's a small firm that knows how to handle S- 
corps particularly well. They are located near North Point Mall. I  
have been very happy with them over the past couple of years.

-Bill Siggelkow

On Nov 10, 2005, at 10:39 PM, Curt Smith wrote:

> Thanks to all on this subject.  Anyone with an accountant referral?
>
> Would you recommend an Errors and Omissions insurance policy?   Or  
> just get an umbrella liability policy through your home owners policy?
>
> I'm interested in a Disability policy in case I break a leg and am  
> unable to punch the clock for a few months, any tips?
> tnx curt
>
> Paul Bemowski wrote:
>> Hey Curt.
>>
>> I've helped several people with this in the past, so rather than  
>> answer directly,
>> I've cobbled some emails together.
>>
>> Some of what is below is relvant for all corporate forms, but it  
>> is specific to
>> forming a Delaware S Corporation, licensed to operate as a foreign  
>> corp in GA, and
>> licensed to operate within the city of Atlanta.  I don't want to  
>> get into a holy war
>> over GA Corp vs. Delaware Corp.  The tradeoff is you have to pay  
>> about 200/year for
>> DE registered agent + about 60/year in franchise tax, but your  
>> corp will pay no GA
>> state tax.
>>
>> Regarding retirement accounts.  Once you form the corp, you should  
>> pay yourself as a
>> W2 employee of your corp.  This is the only way to contribute to  
>> an SEP, and saves
>> you some FICA tax (tradeoffs there as well).  I think last year  
>> you could contribute
>> up to 25% of what you payed yourself via W2 to an SEP.  I run my  
>> SEP thru eTrade -
>> but anyone will do it.
>> Regarding an accountant.  Find one.  I have mine do year end  
>> taxes, but I do my own
>> quarterlies.
>> I didn't mention it below, but you should also register with the  
>> GA Dept of Labor if
>> you make yourself a W2 employee of your corp.
>>
>> There's a lot to learn, best way is to jump in and do it.
>>
>> Bemo
>>
>> ===================
>>
>> For the inital incorporation I used:
>> http://www.incorporate.com/
>>
>> Pretty good service.  Skip all the 'value added' crap with stock
>> certificates, corporate records, etc.  I think in deleware you
>> still need a company seal, but other than that you don't need
>> it.  Should be 150-200.
>> Also consider what they charge for registered agent service,
>> because you'll have to pay this every year.
>> Here are the basic steps:
>> 1) Incorporate.  This means that some third party will file
>> "Articles of Incorporation".  You have to choose a name, and
>> directors and officers (you will be all of the directors and
>> officers).
>>
>> 2) Apply for a tax id number (this is the social security number
>> for your corp).  Use form SS-4 available from irs.gov.  You can
>> do this on the phone with the IRS, instructions are on the form.
>>
>> 3) Register as a GA foreign corp.  I don't remember exactly how
>> to do this, but info should be avilable here:
>> http://www.sos.state.ga.us/corporations/
>>
>> 4) Register with the city for a business license.  You have to
>> physically go to the court house on Trinity Ave. downtown to do
>> this.
>>
>> 5) Take your business license, TIN (Tax ID number) and articles
>> of incorporation (which make you President, CEO, CFO), to a
>> bank.  With these documents you can open a corporate bank
>> account.  In Atlanta, they will not let you open the bank
>> account without an atlanta business license - or else I'd say
>> skip that step.
>>
>> Now you're ready for business.  All this will likely take about
>> 2 weeks.  I believe you have to do those steps in order.
>> Also, you probably want to be an 'S' corporation rather than a
>> 'C' corporation.  S corp is the most common form for small
>> business, and involves less paperwork.  Basically an S
>> corporation pays no federal income tax, because at the end of
>> the year, all income is taxed at your personal rate.  To be an S
>> corp, you have to file IRS for 2553 sometime in the first few
>> weeks of existence.  You can switch between S and C, but only at
>> the boundary of fical years (which will be calendar years for
>> you).
>> Read on the net about differences between S corp, C corp,
>> partnership and LLC.  Most independet contractors go for S corp.
>>
>>
>> ==========
>> Some later info on registering as a foreign corp:
>>
>>> It looks like this is the form I'll want to register as a foreign  
>>> entity:
>>>
>>> http://www.sos.state.ga.us/acrobat/Corporations/236_2000.pdf
>>>
>>>
>>
>> ==========
>> Info on getting an Atlanta business license (relevant for any  
>> corporate form):
>> You may need a federal tax id number (TIN) which is the SSN of  
>> your corporation.
>> The business license is for your company, not for you personally.   
>> It does 2 things:
>>
>> 1) forces you to pay a small tax to the city annually.
>> 2) enforces zoning laws.  When you get your business license, it  
>> is tied to a
>> physical address in the city.  You are in the business of computer  
>> programming.  If
>> you were in the business of auto-body repair - zoning would likely  
>> prevent you from
>> using your apartment as the primary place of business.
>>
>> You have to go to the atlanta business license office at the  
>> courthouse on trinity ave downtown to get this.  budget 1/2 day to  
>> get it done - because you have
>> to go to the zoning office as well - which is in the same building.
>>
>>
>> --- Curt Smith <chsmith at speakeasy.net> wrote:
>>
>>
>>> 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?
>>>
>>> Thanks, curt
>>>
>>> Curt Smith
>>> csmith at javadepot.com
>>> (w)404-897-3073
>>> (h)404-294-6686
>>>
>>> _______________________________________________
>>> ajug-members mailing list
>>> ajug-members at ajug.org
>>> http://www.ajug.org/mailman/listinfo/ajug-members
>>>
>>>
>>
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>
> -- 
>
> Curt Smith
> csmith at javadepot.com
> (h) 404-294-6686
>
>
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