I am a physician who recently paid, submitted documentation to become an S - corporation. My tax preparer unfortately sent in the wrong form to become a LLC as opposed to P.A. This mistake was rectified, and the right paperwork was sent to the secretary of state in early March. I haven't received the documentation from the state (of Texas), but my check for the request was cashed. As I am learning as I go along, and as last year was the first year I was not an employee, my tax burden was substantial....since I didn't pay in installments. I have come to learn from the tax timeline that the deadline to file as an S corporation was March 15th. Is this the time in which the application was post dated, or from the time the documentation was received by the State.
When was the S Corporation and/or the LLC registered with the State? You need to contact the state and find out. If this was formed in 2006 than the deadline-March 15th applies to you.
DId you operate or carry on any business in the new business entity;s name?
Reply to Renu V's Post: Not in 2006, I am a medical director for an Urgent Care facility, previously working as an employed family practioner. The clinic is actually owned by a separate physician. The S-corporation would be for my part as being paid as a "consultant".
But would the S Corporation be in business in 2006? I think from what you mentioned, this is entity created for 2007 and will do business in 2007?
Reply to Renu V's Post: The request for the S corporation was submitted March 3rd, and my payment cleared with the secretary of state. My concern is that I have not received the documentation from the State, to take advantage of incorporated tax benefits for the 2007 tax year, as my first tax installment comes due. I think I need to find a new CPA.
Well you definitely need to find a new CPA.
Ragarding your corporation, you can contact the state and find out on the status of the corporation.
Link to the Department website where you can login and view the corporation status.
Since you are forming a S Corp, once the corporation is registered you can apply for the EIN number, S election and so on with the IRS. Even though your first installment is due, if you are going to file as S Corp, you may be able to withhold the tax from the payroll you take from the S Corp and cover up for the tax that would be otherwise due. But surely, you do need a CPA to make necessary calculations and anticipate the tax liability.
Let me know if you have any question. Bonus and Feedback will be highly appreciated!!!
Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.