Get good advice before jumping in. An hour discussing what you want to do with a tax and business expert could save you a substantial amount.
In one case two individuals started a delivery business. They didn't realize they'd have to file as a partnership. They then decided to incorporate and elect S status. Because of the timing they filed a partnership for the last few months of one year and as an S corporation the next year.
Because of the switch in entities, they couldn't take the Section 179 expense deduction. Moreover, a transfer of equipment from the partnership to the S corporation was delayed and they had to pay sales tax a second time. Add to that the extra accounting and legal fees and the mistake cost them over $5,000, a substantial amount considering the size of the business.
At KR Hoffman & Co., LLC, we want to help you turn your idea into your ideal business. Start your company the right way and get a head start on success. Call us at 954-591-8290 to discuss any tax and business concerns you may have.
K.R. Hoffman & Co., LLC, counsels Entrepreneurs, Professionals and Select Individuals in taking control of their taxes, and businesses. Discover how we can help you overcome your tax and business challenges. For more information or to become a client, call Kenneth Hoffman at (954) 591-8290 Monday - Friday from 8:30 a.m. to 1:00 p.m. for a no cost consultation, or drop me a note.
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