Tax Time

Paul Cooke

Would like to send less $ to the IRS and Mr. Accountant has suggested changing from Sole Proprietor to a Corporation.

The question is: S or C? Anyone know which would be better for a Radiant Heating/Plumbing Contractor?

Thanks.

Paul

Patrick Kozak_2

S or C Corp.

Paul,
Most small businesses benefit from S-corp tax status as the income and deductions flow thru to the shareholder(owner) and end up on his return. This way the income is only taxed once. Another more beneficial enitity you might consider is a LLC(Limited Liability Company), it has all the positive tax attributes of a S-Corp such as the flow thru characteristics, but it does not require the corporate formalities and record keeping of a S-Corp. However,generally(depending on your state of residence) it does have the liability shielding attributes of a corporation. This is a very tricky area so I would strongly suggest you consult a tax attorney in your area. Do not rely on the advice of an accountant when considering the choice of entity for your business. I am a semi-retired tax attorney due to a spinal cord injury, but I think my mind is still clear as far as the basic issues are concerned,lol.
Sincerely,
Patrick Kozak

MURPH'

CHARITABLE CONTRIBUTIONS......

PAUL, eml me and I will give you a list of where to send your extra cash. Llc is where you want to be. lets you re-invest and keeps your self-employment liabilities down, now about them fish, you say you can just whack em' with an oar and they fall right into the boat?? whats the sport in that, sporty ??

Murph'
(missing first day on the sunny shores of W-PA.)

Paul Cooke

S or C

Patrick

Thanks for the direction on this subject. My accountant said I could do this change to a corporation by myself, but it seems to me that paying for the advice of a tax attorney would be money well spent.

Paul

Paul Cooke

Gone fishin'

Murph

All of the extra $ is going to the IRS this year. But, I will put you on my list for charitable contributions for 2003.

And, you are misquoting me about the fishing around here. I would never use an oar to smack a fish. What I did say was that all I had to do was open the back door when the fish are runnin' and a couple will usually fly right in and land in the pan on the stove.

I just have to remember to keep the screen door open. If I don't, they land on the porch, and eventually flop back into the creek.

Unknown

Paul a little advice

my lawyer has helped to make me more money than my accountant ever did. He also has kept me out of a lot of trouble. As much as we joke about them and sometimes do not like their tactics. They are great when you need them.

I actually do some bartering with my lawyer, I fix his HVAC equipment he fixes my legal stuff.

There is something wrong here though as he drives a Porsche and I drive a Ford Van HMMM!!