Tax Trap #1: Waiting to Incorporate: What A Difference A Date Can Make
NOTE: This is the first in a series of 5 articles:"Small Business Tax Traps and How To Avoid Them"If you're a sole proprietor, perhaps you've consideredincorporating your small business or self-employmentactivity.And so maybe you've been wondering,"When is the best time to incorporate?"From a legal standpoint, any time is the best time.The sooner you incorporate, the sooner you make the movefrom the world of unlimited liability to the world oflimited liability.From a tax savings standpoint, any time is the best time.The sooner you incorporate, the sooner you will startputting more money in your own pocket and less in Uncle Sam's.(For more about the potential tax savings of acorporation, see the second article in this series --"Tax Trap #2: Double Taxation -- Isn't Once Enough?"http://www.YouSaveOnTaxes.com/tax-trap-2.html)But from a **tax reporting** standpoint, there is one timeof year that stands out as best: January 1st.Why is that?Assuming you have a sole proprietorship (or other entity,such as a partnership) that is up and running as of January 1, and assuming you then incorporate thatexisting entity on any date other than January 1,you face the possibility of filing not one buttwo business income tax returns for that year.Here's an example to clarify this important point . . .Let's say you've been operating your sole proprietorshipfor a few years, and in early 2005 you decide to incorporate. In January you get around to startingthe paperwork, but life gets in the way andyou finally get it done in late February. By the timeyour state processes the Articles of Incorporation,the start date of your new corporation is March 1.For 2005, you must file a Schedule C for the periodof January 1 through February 28, when your businesswas still a Sole Proprietorship.
And you must alsofile a corporate income tax return for March 1 throughDecember 31.Maybe that's no big deal. Maybe you enjoy filingone business income tax return so much, filinga second one doesn't bother you. And it may bethat the inconvenience of filing two tax returnsin 2005 is far outweighed by the legal and taxadvantages of incorporating.Keep in mind, too, that 2005 will be the only yearyou have to do this "double duty". In 2006 youwill only have to file the corporate income tax return.But if you are thinking about incorporating, thebest time to do it, from a tax paperwork standpoint,is as of January 1. Only then do you have a "clean break"from the old sole proprietorship to the newcorporation.This timing issue can also be relevant if youdecide to make the switch late in the year.
Ifthe effective date of the incorporation is November 15,you will have to file a Schedule C for January 1through November 14, and a corporate return forNovember 15 through December 31. In that scenario,you should ask yourself, "Do the benefits ofincorporating outweigh the convenience of waitinguntil January 1?"So before you decide when to incorporate, take a momentto reflect on the tax reporting consequences of incorporating on January 1 vs. any other date.Sometimes it may make sense to wait a few weeks(as in the second example), and sometimes it makes senseto "do it now", especially when January 1 is nearby..
Wayne M. Davies is author of 3 tax-slashing eBooks forthe self-employed, available separately or as a 3-volumeset, "The Ultimate Small Business Tax Reduction Guide".http://www.YouSaveOnTaxes.com/ultimate-guideTo get your free copy of Wayne's 25-page report,"How To Instantly Double Your Deductions" visit:http://www.YouSaveOnTaxes.comThere’s No Place Like Home, and There’s No Site Like RentalProperty.com.au
Queensland, Australia (ContentDesk) February 23, 2006 -- Authors, poets and philosophers alike have chronicled the importance of home. We make our homes where living is the best, and the decisions made when looking for that special place are never taken lightly. During the past decade, technology has made those decisions easier, and for Australian renters, theres finally a place on the Internet to come home to.The website RentalProperty.com.au has made its debut, bringing renters, property owners and landlords together in one convenient location. RentalProperty.com.au fills a major gap in the market by providing listings Australia-wide
just for rental properties, unlike other websites that focus heavily on selling real estate. RentalProperty.com.au was spawned by the frustration felt by creator Brock Hamilton, who recognized the need for a website that catered specifically to renters searching for Australian property. I was basically sick of the way I was being treated by some...
Incorporate > There’s No Place Like Home, and There’s No Site Like RentalProperty.com.au
Natural Weight Loss Products, Can You Believe?
Experts estimate that millions of Americans are either overweight or obese. There is simply too much temptation wherever you turn. There are bakeries that offer luscious treats in every city and town across america.
For people who are trying to losing weight these establishments are torture, losing weight in not only good for their self-esteem, it is will also help with many health issues.
People who have tried the weight loss programs and failed, are now turning to Natural weight loss products for relief.
Natural weight loss is the process of loosing weight without any diet pills, or any other chemical aide.
As with any other diet program, consulting a physician before starting
is absolutely necessary. Not only will a physician clear you of any possible health problems, but also he or she can create a Natural weight loss routine of diet and exercise routine that will best suit your needs.
Another option...
Incorporate > Natural Weight Loss Products, Can You Believe?
Santex Standard Receives Award of Design Excellence from the American Design Awards
San Diego, CA (ContentDesk) June 14, 2006 - Santex Standard, an offshore solutions provider specializing in software development services for web and client-server applications, today announced that it has received the Award of Design Excellence from the American Design Awards (ADA). Chosen from more than 1,000 entries, Santex Standards corporate site was awarded the gold-level award after earning high marks for creativity, effectiveness and practicality. The Award of Design Excellence is testament to the solid methodology we put behind every project whether its our own company web site or software for one of our global clients, says Juan C. Santiago, chief executive officer of Santex Standard. Our clients outsource their IT and software development to us because they trust us to incorporate the highest level of creativity and technical expertise into every solution. With more than 100 clients around the world and teams working in Argentina, Europe and the United States, Santex...
Santex Standard Receives Award of Design Excellence from the American Design Awards
Incorporate > Santex Standard Receives Award of Design Excellence from the American Design Awards
You Asked: Is Black Tea Good For My Health?
(NC)?Data emerging from several recent studies on black, green, and oolong tea ? each one derived from the same plant species, camellia senensis ? consistently demonstrate that tea may indeed give your diet a boost. The findings have sparked great interest, so here are the answers to the most frequently asked questions, courtesy of the Tea Association of Canada:Q: What health benefits are attributed to tea?A: More people are turning to tea for its antioxidant appeal. Antioxidants are compounds, which neutralize free radicals and potentially protect against disease. Tea is rich in antioxidant plant compounds called flavonoids, which are widely believed to prevent damage to body cells that can result in cancers. As such it is good to incorporate them into the diet.
The antioxidant activity in two cups of tea equals that of seven glasses of orange juice.Q: What are the varieties of tea?A: Traditional tea is black, green, and oolong ? and all are calorie-free. Black tea is the most...
You Asked: Is Black Tea Good For My Health?
Incorporate > You Asked: Is Black Tea Good For My Health?
MICR Multi-User Check Printing Software, CheckRite 2005N
Williamsville, NY (ContentDesk) December 2, 2005 -- Printerm announces the new CheckRite 2005N, Check Printing
Software,
a multi-user server/ client
based
software. The software includes one custom import interface and check layout.Standard features include:" CheckRite 2005 data (Accounts and Bank Info) is now secured and protected. " Password security, scanned signatures and logos are printed as part of the check, Account Screen maintains company and
bank
detail . " Encryption of signatures is an enhanced security feature." Print blank checks and checkbooks. " New Personal Check book feature to print a.
Reorder form b. Print Check copies c. Print Deposit slips " Issue checks on demand for unlimited companies and accounts " Historical log of checks printed with all details stored " Prints Pre-Authorized checks by customer or company name " Automated signature selection and control matrix definition" Multiple format, logo, signature...
MICR Multi-User Check Printing Software, CheckRite 2005N
Incorporate > MICR Multi-User Check Printing Software, CheckRite 2005N
There’s No Place Like Home, and There’s No Site Like RentalProperty.com.au
Queensland, Australia (ContentDesk) February 23, 2006 -- Authors, poets and philosophers alike have chronicled the importance of home. We make our homes where living is the best, and the decisions made when looking for that special place are never taken lightly. During the past decade, technology has made those decisions easier, and for Australian renters, theres finally a place on the Internet to come home to.The website RentalProperty.com.au has made its debut, bringing renters, property owners and landlords together in one convenient location. RentalProperty.com.au fills a major gap in the market by providing listings Australia-wide
just for rental properties, unlike other websites that focus heavily on selling real estate. RentalProperty.com.au was spawned by the frustration felt by creator Brock Hamilton, who recognized the need for a website that catered specifically to renters searching for Australian property. I was basically sick of the way I was being treated by some...
Incorporate > There’s No Place Like Home, and There’s No Site Like RentalProperty.com.au
Tax Trap #1: Waiting to Incorporate: What A Difference A Date Can Make lake tahoe
Tax Trap #1: Waiting to Incorporate: What A Difference A Date Can Make Incorporate refinance