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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 41221
Experience:  Run my own successful business/contract law practice.
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Requesting Dimitry Esquire, Attorney Every time I withdraw

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Requesting Dimitry Esquire, Attorney

Every time I withdraw money,write checks,buy something online will my company have to pay more tax .

What is the purpose of showing receipts like staples or Office Depot if I show receipts does it mean less tax I have to pay

Thank you for your question and thank you most kindly for requesting me to assist you further.

Let me explain both concerns a bit because they are a bit different. Some purchases (in fact many purchases) you make with company funds, if they are for company purposes, may be written off or otherwise defined by your accountant as something for which tax is not owed. Let me try to illustrate.

Let's say you receive $40,000 in donations before you are a formal non-profit. That amount would be considered taxable. However, via receipts, you can show that you spent $30,000 on items that can be written off, such as corporate furniture, travel, even wages. Then the tax obligation may only be $10,000 based on proof that other expenses were essentially justified and were not 'profit' as they would come before you get to net income calculations.

Good luck.

Dimitry K., Esq. and 5 other Business Law Specialists are ready to help you
Customer: replied 4 years ago.
Thank you so much

Excellent service

You are most welcome, James, glad to help!

Should you ever need me again, please feel free to ask for me by name and I will be more than happy to assist you further.

Customer: replied 4 years ago.
I am filling out the paper work to become non profit in New York and will fill out forms for 1023. If I want accept donations in other states do I have to file with them
I have friend in fl and she wants to donate do I got file with state of fl or nj. Ca etc

Thank you for your follow-up, James. I do apologize for the delay.

You do not need to fill out forms in other states, if the IRS deems you be a valid entity, your non-profit status would be recognized in whatever state you wish to collect donations, you would just have to make sure that you are not violating those state's laws in how you pursue your solicitation and collection.

Good luck.