Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

Forming a C-Corporation for a paint retail business.

Customer Question
Forming a C-Corporation for...

Forming a C-Corporation for a paint retail business. Wondering what tax benefits or other benefits there would be in making my wife a co-owner. She is currently working full time for a government contractor. She will be helping me with the business from time to time.

Accountant's Assistant: Have any documents been drafted or filed?

Not yet.

Accountant's Assistant: What state are you in?

Virginia

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

Not neccesarily.

Submitted: 9 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 2 minutes by:
8/1/2017
Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 9 months ago
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,408
Experience: Certified Public Accountant
Verified

Hi, my name is Mark. I will be happy to help you with your questions. Will you have other employees?

Ask Your Own Tax Question
Customer reply replied 9 months ago
I am planning on opening up shop in November. Yes, I will have an hourly operations manager, and three part-time hourly Sales Associates. I will be running the business full time. My wife has a Full time job with a govt. contractor. She can help with admin here and there. Wondering what advantages or disadvantages there are in making her a co-owner
Customer reply replied 9 months ago
What would you do? It has to be a c-corp because I am funding part of the business with my 401k from my previous employer.
Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 9 months ago

There are no real advantages or disadvantages. With a C-Corporation you are subject to two levels of taxation. This income is first taxed at the corporate level and it is then taxed again when it is distributed to shareholders as dividends. You would want to try to manage the income of the C-Corporation.

As a corporation you would need to pay the officers a reasonable salary. So making your wife a shareholder/officer would allow you to spread the salary between two individuals. With a C-Corporation the IRS would be concerned that your salary would be too high.

Ask Your Own Tax Question
Was this answer helpful?
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
586 Satisfied Customers
Experience: 10 years experience

Wallstreet Esq. is online now

A new question is answered every 9 seconds

How JustAnswer works:

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

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.WMatteson, 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.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, 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.

OrvilleHesperia, 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!!!!

AlexLos 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.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I am organizing a garage sale that will benefit the G.
I am organizing a garage sale that will benefit the Susan G. Kolman foundation for breast cancer. A friend of mine has donated some items and is looking for a tax donation receipt. How might I handle … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Defined Benefit Plan: If I have a new business with
Defined Benefit Plan: If I have a new business with expectations of being able to contribute for the forseeable future, fund a plan with $18,500 voluntary + $82,500 as 25% of net profit in 2018, but t… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
I owe federal and state taxes. If I get on a payment plan
I owe federal and state taxes. If I get on a payment plan for both can I still get my tax returns? … read more
Bryan M.
Bryan M.
Owner
Masters of Accountancy
125 satisfied customers
Individual on an o-1 visa with no US income or presence in a
individual on an o-1 visa with no US income or presence in a year, do they need to file a return?… read more
abci168
abci168
Principal
27 satisfied customers
The state did a estimate on are business sales tax and I
The state did a estimate on are business sales tax and I hadn't sent the amount tat should of been taxable the amount that should of been taxed is way less then what the estimate was what do I do they… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Planning on moving back to the states and Im selling all the
planning on moving back to the states and Im selling all the furniture and car abroad, so Ill be bringing way over 10k back. Will this be taxable? even do I purchased everything in the states before g… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Are there Tax Advantages to being an S corporation versus a
Are there Tax Advantages to being an S corporation versus a sole proprietorship? … read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
836 satisfied customers
Just discovered $1000 dividend income. Will IRS be confused
Just discovered $1000 dividend income. Will IRS be confused if I send 1040X today when I just filed my 1040 yesterday? Should I wait a couple of weeks? … read more
Carter McBride
Carter McBride
LLM
1,060 satisfied customers
Is military retirement income taxable in the state of
Is military retirement income taxable in the state of Hawaii . I asked this question before and was told that military retired pay was not taxable in Hawaii.what's your opinion?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Do i pay income tax,on dividends on stocks,if they are
do i pay income tax,on dividends on stocks,if they are rolled over into more stocks. Or when i withdrawl, from my stocks… read more
abci168
abci168
Principal
27 satisfied customers
If Non Resident Alien (NRA) for Tax Purposes has Dividends
If Non Resident Alien (NRA) for Tax Purposes has Dividends from Nuveen Tax Free Municipal security such as Symbol NVG, 1. Is the broker required to withhold 30% and/or 2. Does the NRA get the tax with… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
I have a capital gains taxation question, federal and state
I have a capital gains taxation question, federal and state of california … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Iowa Income Tax. Is 100% of capital gains on the sale of a
Iowa Income Tax. Is 100% of capital gains on the sale of a rental property deductible if the requirement is met for hours spent for management of the property? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
New state department of taxation has garnish my income for
New state department of taxation has garnish my income for taxes owed … read more
abci168
abci168
Principal
27 satisfied customers
Does New York State Taxation notify the IRS about individual
Does New York State Taxation notify the IRS about individual audits … read more
abci168
abci168
Principal
27 satisfied customers
I was audited by New Hork State Department of Taxation over
I was audited by New Hork State Department of Taxation over by 2009 taxes....the entire process took until December of 2017 before they finally agreed that I owed no money. One of the major discrepanc… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
US taxation and sales tax issue I started ebay business with
US taxation and sales tax issueI started ebay business with a Korean relative. We don't have a partnership agreement. The partner has an paypal and ebay account, gets a sales order, and let me dropshi… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Same question on the taxation of interest and dividends (on
Same question on the taxation of interest and dividends (on mutual funds) earned inside a disclaimed portion trust ... disclaimer trust . The original owner of a trust passed and the spouse declined a… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x