Quote:
Originally Posted by fishnut9
I just realized that my wifes business writeoffs are actually deducted from her total income not the actual taxes. That only gives me a couple hundred dollars off. Does anyone know if this is true.
|
but you had a pamphlet or something that you felt indicated otherwise when we tried to explain it last week. As we said last week get an acountant to set this up correctly once and for all. If you guess and get it wrong it can come back to bite you 2-3 years from now for a lot more than you are willling to risk right now.
Frans if you converted from proprietorship to incorporated last fall it is unlikely you needt to be concerned with directors fees.
Generally large public corporations (not private) would have a Board of Directors who receive a fee (honorary) for directing the affairs of the business. If incorporated within 6 months you probably have to wrap up a partial proprietorship year (to incorportion) and then your first fiscal year return for corporation will be due 6 months after fiscal year end (fall of 2011).
As above spend a few dollars to get it set up right as your trial balance from the proproietorship year end is very necessary to the start up of the incorporated entity. Well set up to begin with is essential to regular maintenance, planning and reporting.