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How to run and maintain a corporation?

Discussion in 'Business & Tax Advice' started by cphonfire, Jul 30, 2009.

  1. cphonfire

    cphonfire Registered Member

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    I am setting up a corporation very soon. I will be the only member. I have read that this is risky and it is very important to leave a "paper trail" of everything i do. Is there any resources you guys know of for starting and maintaining a corporation? I want to know what forms, what meetings and all that i have to keep track of...

    thanks
     
  2. atlast

    atlast Newbie

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    There's two types of corporations, S-corps and C-corps. If it's just you then a C-corp (traditional one with the officers, annual meetings, etc.) is probably overkill. S-corp is more of a one man show. I'm not an accountant, but a single member LLC seems like a better fit for you, especially since you don't seem to have any compelling reasons to go through the C-corp hoops and get double-taxed on your income. Google "S corp" and "LLC" and get some info about them.
     
  3. Torque09

    Torque09 Junior Member

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    LLC is way to go mate. In my opinion both "S", "C" structure is a pain in the a...
     
  4. alcapon3

    alcapon3 Junior Member

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    the best way to leave a paper trail is to keep all expenses on your business credit card linked to your business bank account. Keep track of everything the business spends and makes in an excel spreadsheet. Hire an accountant to help you on taxes ($10/hour on elance). Do not pay a business expense with your personal bank accounts or vice verse. I own an LLC and I beleive it is the way to go.
     
  5. UndeniableSpirit

    UndeniableSpirit Regular Member

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    In running my corporation, I have never had one meeting. I don't think you'll need to have any if you're the president and sole shareholder.
     
  6. Slasher

    Slasher Junior Member

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    LLC.

    There are some big companies that are LLC, you don't necessarily need to be a corporation.

    Plus, double taxed as said above. You don't need that.
     
  7. BigHustlah

    BigHustlah Power Member

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    Yeah IMO for IM LLC is better. I have run a corporation in the past, more of a pain in the ass than its worth.

    For the ultimate in BH tactics, find some degenerate junkie / loser and have them sign everything and put the LLC in their name. Then open a mailbox NOT at the USPS, but at like UPS store or local mail center. Get your LLC's mail sent to that box (of course you are the only one with the key) and put the LLC's phone number as yours. Set up a bank acct for the LLC under the degenerates name, and add yourself as an authorized user. (make sure the degenerate never has access to this acct) But use the degenerate's SSN & signature when setting it up. Give the degenerate $50 / bump of coke / some paint to huff for their troubles, and know where to reach them in case you need to make any changes int he future.

    Voilas, tax free money.
     
    • Thanks Thanks x 2
  8. Pyronix

    Pyronix Junior Member

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    it all depends on what you want to achieve with your business entity the secret is to control every thing and own nothing check out

    Code:
    http://www.ucbsite.com/members/ucb/blog/VIEW/00000013/00000013/Follow-Me-See-500-Turn-Into-50000-In-45-Days.html#00000013
     
  9. Thenewrich

    Thenewrich Newbie

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    By law if you own a C or S corp you still have to have an annual meeting. I never understand why people choose not to. The Annual meeting can be held anywhere in the world and makes it a complete tax write off. This alone made my Brazil trip in July tax deductible, and all I had to do by law was take a few moments and talk about my business. You can always decide to chill in your boxers and have a meeting in your closet as well :). Also, if you are ever audited, its just a better idea to have everything on paper. As mentioned, a separate account for business purposes, record any business mileage (I think in the USA its still.35 per mile). Typically if all of these things are organized in one journal that can be given to the IRS if audited, it puts you well ahead of the game to be left alone. I am a C-corp guy myself. I like to think big, and I do not mind the headache of of maintaining my C-corp since I have no intention of breaking tax laws But as other posters have said you can start small with an S-corp first, or shoot for a LLC. I chose not to get an LLC as I am a resident of California and LLCs are mad expensive here. Would rather take on Wyoming, or Delaware...Remember...Its not how much money you make, its how much of it you keep!
     
  10. mr.breakit

    mr.breakit Jr. VIP Jr. VIP Premium Member

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    what are you planning on doing... also what state are you in as that will matter on taxes for most a lot of people like nevada and delaware, but you can use quickbook at the end of the year. get a bank account and an business credit card and only use that card or account for business expenses and then at the end of the year quickbooks allows you to upload your bank statements electronically.
     
  11. vivalafeva

    vivalafeva Jr. VIP Jr. VIP Premium Member

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    a lot of people here are saying LLC, I am in no way a tax professional. In fact Im far from it. But my accountant suggested a S Corp over an LLC. Your best bet is to find an accountant and speak to them about your situation.
     
  12. kalekom

    kalekom Junior Member

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    Main question here should be - from which country are you?
     
  13. lisagauss

    lisagauss Junior Member

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    That is really great, but I would probably set up a partnership LLC, But not with Me as the partner, another one of my LLCs with the 'crack head' as the other partner. So the new LLC will have 2 members, the 'crack head' and My LLC; giving me an extra layer of protection and still giving me full control of the bank accounts and such. Also, I would have a letter pre signed by the crack head saying that I am no longer a member of the LLC as of such and such date. In case someting came up, I am alsways pull that letter out and say I haven't been a member of that LLC since this date.