Hi Wayne,
I would like to incorporate my company. Some people are recommending to incorporate my company in Delaware. I would like to know how it works. If you charge for this advice or if you can help please let me know what is the cost for your help.
thank you,
Rashid Kaddoura
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Hi Rashid:
I’m doin’ great — It’s Tax Season! (Thanks for asking.)
Excellent question. And there’s no charge for the following answer.
>From a legal standpoint, incorporating a business is governed by state law. So check with a local attorney or contact your state’s Secretary of State office (or whatever your state may call it). Generally, incorporating involves filing the appropriate paperwork with your state, accompanied by a filing fee. Incorporating in Delaware may not be that advantageous; I’d ask a lawyer about that.
>From a tax standpoint, by default the IRS considers a new corp to be a “C” Corporation. You may want to consider filing Form 2553 with the IRS to request treatment as an “S” Corporation – for many small biz owners, there are several tax advantages to the “S” Corp format. But of course, everybody’s situation is different so I must advise you to consult a tax professional before deciding which is best for you, “C” or “S”.
(Some basic info re: “C” and “S” corps is found in my article “Reducing Business Taxes 101”, published in the 3/3/03 issue of murdok.)
I am accepting new clients and would be glad to help you any way I can. I recommend you do the following:
1. Read my free tax ebook, “How Any Small Business Owner or Self-Employed Person Can Save Thousands in Taxes”. It’s available by subscribing to my bi-weekly ezine, “Make My Life Less Taxing.” To subscribe, go to http://www.YouSaveOnTaxes.com. After you subscribe, you’ll receive an email immediately with the free ebook attached as a pdf file.
2. Purchase my new ebook, “The Tax Reduction Toolkit”. I have several chapters in this book devoted to the advantages of forming an “S” Corporation. Included in the book are tax consulting coupons worth $395 — including a free 60-minute phone consultation for us to discuss your particular tax situation and to address your tax questions.
So you spend $29, get to “check me out” for free, and then we can go from there. If we agree to do business, great. If not, no hard feelings. And if you feel my book wasn’t worth $29, I’ll gladly refund your money. Fair enough?
Let me know what you think.
Sincerely,
Wayne
Wayne M. Davies is author of 3 tax-slashing
eBooks for small business owners and the self-employed. For a
free copy of Wayne’s 25-page report, “How To Instantly Double
Your Deductions” visit http://www.YouSaveOnTaxes.com
