My dad's accountant filled out a form for his small business and wrote the type of corporation it is but i cant read what is says. I know its a C but after it there is a 6 and one or two other characters? I think it says C628 or something close to that but i'm not sure.
2007-03-31 05:41:39 · 4 answers · asked by Anonymous in Business & Finance ➔ Corporations
Both of the prior answers are wrong.
Call the CPA to answer what the unknown characters are.
There are only two types of corporations. C Corp and S Corp. There are other types of business entities, but only these two are corps. Here is a discussion on the different types of entities:
A sole proprietorship (dba) has the least amount of expense and headaches to setup and operate, but the also the least amount of liability protection. If you go bankrupt as a SP you must declare personal bankruptcy. Income and losses are taxed to you personally and also completely subject to Self Employment tax of 15%.
An LLC offers liability protection and is an organization that is more difficult to set up and operate than an SP but less than a Corporation. Income is taxed on your personal tax return as a "pass through". These taxes may be higher if you have income right away, but if you have losses they are deductible against ordinary income on your tax return. SET is due on your salary, but not necessarily on company profits.
An S- corporation has the same tax status as an LLC but is more complicated to setup and operate. If offers liability protections.
A C-Corp is the most complicated to setup and operate, but income is taxed at the corporate rates which can be less than the personal rates. If you sell assets from a C -Corp and then want the money for yourself, it will be taxed twice - once in the corp and once personally. But if you sell the entire business, you get the lowest possible tax rate, capital gains tax, currently 15%.
In short if you will have early losses and need liability protection do an LLC. If you will have a substantial business with lots of profits especially early on, do a regular C Corp.
Good Luck,
Dana B - President
www.thebarfieldgroup.com
2007-03-31 09:55:03 · answer #1 · answered by planningresult 4 · 4⤊ 0⤋
Tic-Tac gave you a bad answer. There are several types of corporations: C, S, LLC, and in some states (Florida), there's a Close corporation.
The A, B, C that Tic-Tac told you about is worthless.
2007-03-31 08:38:37 · answer #2 · answered by jdkilp 7 · 1⤊ 2⤋
well the letter detimans the class of the busnniss and the # is either his bunissnis id, area number or file number for the acountain to keep it organised. Their are A ( wallmart target and bestbuy) B ( factorys and mid size stores like dollar genaral and thouse types.) C ( is like state stores like Gardner pahmacy, kansas city family care, or other small time bussnisses)
2007-03-31 06:14:44 · answer #3 · answered by Anonymous · 0⤊ 3⤋
you need to have an settlement the place he transfers his share to you. Then a shareholders assembly to choose for you as president. then you definitely ought to notify the secretary of state which you have develop into the president. you need to additionally make your self the agent for technique.
2016-11-25 02:12:40 · answer #4 · answered by eich 3 · 0⤊ 0⤋