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Author: TheBadger Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121114  
Subject: Re: Some S-Corp Questions Date: 12/20/2000 10:44 AM
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I've been operating as a sole proprietor for 3 years, and have now incorporated and intend to start doing business under the corporate name on 1/1/2001. I have a few questions that I would greatly appreciate help with.

1) I will have a split plan (15% profit sharing + 10% money purchase) for retirement. Do I make contributions to the two plans throughout the year, or after the end of the year?

Either; however, your 2001 plan contributions will need to be made by 3/15/2002; your "S" corp. tax return date.

2) Corporate credit cards charge irritating fees. Can I make business purchases with a personal card and then have the Corp re-imburse me?

Certainly. You as an indiviudal, should complete a monthly exepense report & submit it to your corp. for all ordinary & necessary business expenses you incur on behalf of the corp.



3) For meal expenses while travelling, can my Corp employee reimbursement plan choose to simply re-imburse at IRS established Per-Diem rates?

Sure.

4) I provide consulting services, and my clients have submitted 1099's for compensation paid to me in years past. Will they continue to file a 1099 (or some similar form) for compensation paid to my corp?

Depends. A payor is not obligated to complete & file a 1099 when payment is being made to a corporation; although many payors choose to do so anyway.

5) Do I have to have several separate officers/board members, or can the board consist of only one person (me)?

Just you.


6) I will have some work completed in 2000 that I may decide to not invoice until 2001. If I do it that way, is that income (in 2001) Sched C income (since I did it in 2000 when I was operating as a Sole Prop) or is it Corp Income (since it is taxable in 2001 when I am operating as a Corp)?

Actually it can more or less be your choice. The simple solution is to call it corp. income.



7) Where can I find info on a Corp employee medical expense reimbursement plan?

easy way is to check out the bookstore for some "INC Yourself" books which usually have a fist full of draft corporate resolutions in them.

TheBadger
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