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Has anyone successfully has set up a C corporation...
# general
m
Has anyone successfully has set up a C corporation without an accountant that can help me pls?
m
Without a lawyer?
m
Correct
m
You should probably speak to an accountant to make sure you really want/need a C Corp. They come with a whole bunch of restrictions and disadvantages that are only advantageous in certain cases
m
I had a paid consultation with the accountant, and basically this is the right fit. Now I have to set it up.
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m
Especially if you will be the sole owner
From a lawyer perspective, you won't have anyone to fight with so bylaws and shareholder agreements are probably only necessary to the barest extent required by law
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m
Thanks. I'll try!
f
C corps are double taxed
When incorporating your business, you may choose to form either a C or S corporation. One of the main reasons that people choose to form an S corporation is to save money on taxes. As a C corporation, you must pay taxes on your income twice—on the net business income and the profits received by shareholders. As an S corporation, you will only pay taxes on the latter
m
The accountant advised me that if I don't want the corporation income on my personal tax return, then I should go for the C so it can be filed completely separate from my personal return. Place correct me if this is not accurate.
m
I think it also matters why you don't want it on your personal tax return, since maybe that could make the double tax worth it.
f
You will pay double taxes and how are you getting money form Corp to your pocket
m
If I understood correctly one of the ways would be to get the money as a loan from the corporation. Let me know your thoughts
m
I mean I have LLC's and I do that..
f
That is playing with fire
LLC are pass thru so the income the company makes is your taxable income
m
Sorry I meant I loan the LLC money
f
Lending from a corporation that you own to your personal pocket is dangerous
In terms of hiding income
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m
Strongly agree
m
Any other suggestions? If I don't want the income to be on my personal return
f
You have to explain why you don't want it as it changes the answer
m
As per my current immigration status only allows me a certain amount per year.
f
You can take out a loan against your assets
But not from your assets
Elon musk borrow millions against his stock so he has no income only once did he sell his stock and pay taxes
m
Aha. Practically, what does taking a loan against my assets mean? How does that work?
f
The asset is the collateral
Ask an account this question but share the whole picture not just the question you asked
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