Skip to main content
No. of Recommendations: 0
#1.) The company is currently a C-Corp, but I want to transfer it to an S-Corp to have the income pass through. Is there a time limit to file Form 2553?

Its been a while since I looked at 2553; however, 60 - 90 days rings a bell in order to treat the corporation as an "S" from incveption; otherwise you wind up with two stub periods and dual tax treturns; one as a "C" and one as an "S" when the actual election takes effect.

#2.) I keep all my own financial records through Peachtree (similiar to Quickbooks) and plan to only hire an accountant during tax time to file my taxes. I was referred to him by a good friend and the guy charges $350-500 to file it once every year. To me, this is a good deal, but should I be aware of anything else I have to file in the interim?

Filing wise; probably not but for typical business licenses which are likely not be very complex in NH. However, it is probably a good idea to have a 2 - 3 hours sit down with your accountant to make sure you are recognizing revenue at the right times and have a handle on all ordinary & necessary business expenses.

#3.) Most of my payments come in the form of PayPal which I do deduct their commissions. Every month I list the total charges PayPal charges me and write it off as a "Payment Processing Expense" in my Peachtree Software. Can I do this without printing every expense one by one since it's recorded electronically and I can have access to it anytime?

No problem.

#4.) Relates to PayPal. It's currently tied to my personal checking account when I transfer the balance from my PayPal account to a real bank account. Although I do have a Business Checking account at another bank, it does not transfer there. I simply take the funds when it arrives to my personal bank and send it over to my business bank. As long as everything balances out, I won't get in trouble for doing this will I?

It okay, but not preferable. I would change the Paypal routing to deposit directly into your business account. Monies flushing through a personal account is not improper or illegal in any manner; it's just a red flag.

The State of New Hampshire doesn't have any sales tax in selling products like these, so I believe I covered what is important, but if I am missing anything, please advise this young boy:)

You might owe sales tax if your purchaser is also a NH resident.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.