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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 91031
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I have a multi-part question. Im a student considering starting

Resolved Question:

I have a multi-part question. I'm a student considering starting a Corporation that will build websites and web-based / mobile-based software applications while I'm still in school.

Is it possible for the corporation I start to pay for my education and deduct it from the taxes of the company? If it is possible, would it make more sense to do it that way or would it make more sense to just deduct it at an individual income tax level?

I will need to use software from Adobe. I've spoken with a sales rep and they say the terms of purchasing the student version of their software, which costs about $370 on amazon.com vs $1800 for the normal commercial edition, say that I can't transfer the license to a corporation, nor can I have the corporation pay for it, but I can use it commercially. I'm concerned about using software purchased by me personally as a way to pierce the corporate veil.

Is this a valid concern? If this is a valid concern, is there a way to protect myself while still using student edition of the software without it being a huge nightmare? Right now, I'm thinking that I could possibly sub-contract the work out to myself personally and have the corporation take responsibility for the work, but that sounds like a lot of work.
Submitted: 2 years ago.
Category: Legal
Expert:  Law Educator, Esq. replied 2 years ago.
You would have to prove that the payment for your education is a necessary business expense for the corporation to deduct the payment, but then the payment would become income to you as it is a payroll benefit you are receiving from the company. This means you have to prove the education you are obtaining is in the same line as your corporation and the education is necessary to further your business and it does raise a red flag for audits.

The use of the software, you can make personal use of the software license you purchase even if you are using it to do work for your corporation as long as you use it personally and the other members of the corporation are not using it you are not violating any licenses.


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Customer: replied 2 years ago.
First of all thanks for the quick answer about the educational expenses.

I want to clarify my question with regards XXXXX XXXXX software:

I've read a lot of horror stories about people not following corporate formalities enough or having enough separation between them as a person and the corporation--enough to make me cautious.

Would using software that I would have to pay for personally, which would be registered in my name--not the company's name, be able to be considered evidence of lacking that kind of corporation vs person separation, and therefore would that allow someone to pierce the corporate veil and sue me personally for software developed and owned by the corporation?

In a broader sense--from a legal/asset-protection/corporate veil perspective, is it ok for someone in a corporation to use software owned by them personally on a corporate computer as long as it's used only by that person personally?
Expert:  Law Educator, Esq. replied 2 years ago.
Using you personal software personally for your corporate work is not sufficient to pierce any corporate veil. It is even fine for employees to use their own personal software for their employment AS LONG AS the registered user is the one using it and it is not being used by others in the company.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 91031
Experience: JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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