How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Lev Your Own Question

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 22968
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

Hello, Just started a C Corporation, it is in the finance

Resolved Question:

Hello,

Just started a C Corporation, it is in the finance business working as a commercial loan consultant linking potential businesses with investors for various financing products. We will guide them through the application process. As payment, I would get paid certain points per approved loan trans actions. In order to get paid for this work, I need to fill out broker and consultant agreements.

Now, as part of the application, obviously I have to fill out my company information...I do have an EIN number , etc...... They lenders have provided me with a W-9 form. For me, since I formed the company, I will put everything under the companies name.....However, my partner has been trained as well and will work this part of the business as well.

So two questions:

When filling out the W-9 I know I will need to fill out corporate info.....However, my partner will be working with me and when she makes transactions, they will go under the corp as well...So , do I just pay her from the money brought into the corp or does she need to do a separate W-9

Or

When we close deals, they go to the corp and then I just pay her from those,,,,she would then claim separate taxes>
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Lev :

Hi and welcome to our site!
Your assumption is correct. The C-corporation is a separate entity - and when the C-corporation pays someone for services - there will be appropriate paperwork and reporting.
If your partner and you personally work as employees of the C-corporation - each of you will be paid wages.
Form W9 is not required - but you may prepare this form and keep it for each employee. However - that is not required.
When is required - when C-corporation pays wages to yourself or to other employees - such wages are subject of employment tax - and in January - the C-corporation will issue W2 form to each employee - which each employee will use to prepare his/her individual tax return.

Lev :

On the corporate tax return -wages paid to employees will be deductible expenses - thus will reduce net taxable income of the C-corporation.

Customer:

Ok, so from a financially strategic approach would you recommend that my broker agreements with the lender go straight to the Coroporation and I then pay my partners and myself, then when I bring in independent contractors, I have them to fill out a w-9? However......for an example,,,,,,the lender would pay me $200....I pay the contractor 100 or half....the contractor would then be responsible for the taxes?....If so, how do I claim this payment on the corporate taxes?

Lev :

By signing form W9 - the person certifies his/her tax identification (social security number or tax ID) and that he/she is not subject of backup withholding. So - that is a good practice to need a signed W9 form for each employee and each independent contractor to whom your C-corporation makes payments.
That is a standard way to obtain tax information of payees. However if your C-corporation have all information needed to report such payments W9 forms are not required.

Customer:

So, for my partner she would just fill out a W2 both State and Fed, I would calculated the estimated tax withholding and then write a payroll check? then the Independent contractor would do w-9 and would be responsible for reporting as I would report payments to the IRS on that independent contractor?

Lev :

Again - as long as you have all information required for reporting - such as the name, address, tax ID - the form W9 is not required.
If your C-corporation pays to the contractor - not an employee - that compensation might need to be reported if the compensation for services will be more than $600 per year - such compensation must be reported to that independent contractor and to the IRS on form 1099misc - http://www.irs.gov/pub/irs-pdf/f1099msc.pdf‎

Lev :

You need to be clear that a worker is independent contractor and NOT an employee. That is because there are different reporting and withholding requirements for employees.

Customer:

Ok, so when I hire someone as an employee , would they fill out the state and fed w2?

Lev :

Let's be clear - not you - but your C-corporation which is a separate entity - hires either an employee or an independent contractor.
In case of an employee - the corporation pays wages - which are reported on W2 form. There is only ONE W2 which is used to federal and state reporting.
In case of an independent contractor - the corporation pays compensation - which is reported on form 1099MISC (if compensation is above $600).

The recipient will file his/her tax return - and will report all types of income regardless if such income is reported to the IRS or not.

Customer:

Thank, You very much......got it

Lev, Tax Advisor
Category: Tax
Satisfied Customers: 22968
Experience: Taxes, Immigration, Labor Relations
Lev and 7 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
Lev
Lev
Tax Professional
22968 Satisfied Customers
Taxes, Immigration, Labor Relations