Frequently Asked Questions :

1. Why and how do you incorporate?

There are two main reasons to incorporate. The first reason is your business may benefit from the “limited liability” the corporation provides you. This means if there is a liability claim against the corporation, the shareholders personal liability is limited to their investment in the corporation.

The second reason is the possible tax savings. The IRS has stated corporations need to pay shareholders that work in the business a “reasonable” salary. In most cases a “reasonable” salary is lower than what the owners were making as sole-proprietors and paying self-employment tax on. The tax savings would amount to 15% of your company’s net earnings over and above a “reasonable” salary paid to the shareholders working in the business.

2. When are estimated taxes due?

April 15
June 15
September 15
January 15