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bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 3027
Experience:  IRS Enrolled Agent, 18+ years of experience in tax preparation with associated finance experience.
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I am going to move to an IC status within the company I

Customer Question

I am going to move to an IC status within the company I currently work for. They require that I have a corporation. Since it will just be me is a S-Corp the best way to go?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: As an s-corp i read i need to set a reasonable salary. How do i determine?
JA: Is there anything else important you think the Accountant should know?
Customer: A lot of my business activity will be in the northeast US and i do not plan to relocate. I currently live in Texas are their any know issues establishing a s-corp in Texas or should i register in another state. What deductions can i take as an s-corp?
Submitted: 4 months ago.
Category: Finance
Expert:  bkb1956 replied 4 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

If the company requires you to be a corporation, an S corporation is the best way to go for you. An S corporation is a pass-through entity, which means any profit/loss will be passed through to you personally and included on your personal income tax return. The S corporation will still have to file its own tax return, but will not owe tax.

You can determine a reasonable salary by researching what people are earning for doing the same job as you are.

It will be best to form the S corporation in Texas since you live there.

The deductions you can take are any and all expenses reasonable and necessary for your business.

The following links contain excellent information regarding S corporations:

http://www.bizfilings.com/learn/s-corporation-advantages-and-disadvantages.aspx

https://www.incorporate.com/s_corporation.html

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Expert:  bkb1956 replied 4 months ago.

Just following up with you to see if you have any other questions or concerns. If so, please let me know so I can further assist you.

Best regards,

Barb