How do I file income as payroll with a late S-corp election?
You can create one or several check(s) for yourself any time before Dec 31 and report that as W2 wages. If you want to just count the distributions, you already took, you will have to go back and figure out how to gross up your pay so that the net comes out to what you have already received. How you are processing payroll will determine if it is easier to actually run a payroll for yourself or just manually adjust your earnings reports. Just make sure you do everything in the fourth quarter for tax reporting purposes. Don't forget that even though you already paid yourself, you are going to have to have the cash to pay the IRS and your state for the payroll and withholding taxes.
How important is it to file a Section 83 (b) election for an LLC S-Corp?
I concur with Karl Stevens in fact most S Corporations today are LLC's at the legal entity level. S Corp and LLC are two very different questions. As to the original question about making an 83(b) election, it is very critical that you understand the consequences of making the election for restricted stock in an S Corp, but if you should or should not make the election will depend on the specific circumstances and both the tax impact on the person receiving the grants and the current S Corp shareholders.If you receive a stock grant for an S Corp and make an 83(b) election then you are considered as being an owner of the S Corp. That means you are required to be allocated a proportionate share of the income of the S Corp each year based on your ownership percentage and if the current shareholders receive a distribution of cash, you have to also receive a proportionate distribution.You also have to take into consideration that making an 83(b) election means the grant recipients by being considered shareholders could terminate the S election if any one of them is a ineligible S Corp shareholder or if adding shareholders puts the number of shareholders over 100.If you do not make the election, then you are not considered a shareholder and thus cannot receive distributions from the corporation and the corporation may be required to accrue any shareholder benefits that would otherwise be due to you during the vesting period.Finally the company needs to be very sure that nothing in the vesting and grant agreements creates a second class of stock that would terminate the S election.You will not know how "important" the 83(b) election is until after it is too late to do anything about it. You have 30 days from the date you receive the grant to make the 83(b) election, but all the election does is accelerate you recognizing income for the receipt of restricted stock, that you would otherwise not have to report as taxable income. You do this because if you recognize the value of the stock today as ordinary income, then years from now when you sell the stock you get capital gain treatment on the appreciation in value between today and that future date. If there was a substantial increase in value in the future, then making the 83(b) election was very important and will greatly reduce your tax burden. If instead the value of stock decreases or becomes worthless, then you made the wrong choice as you would have been better off to have not filed the election.You will often hear people say "you should always file an 83(b) when you receive restricted stock". That statement is based on the fact that no reasonable person would take payment for work done in the form of stock that they can't sell today, unless they believed that the stock was going to be worth a lot more in the future when they can sell it. Add to that the fact that the resulting tax liability when you do sell the stock can be 1/2 of what it would be if you did not make the 83(b) election and you get that filing the election is the safe choice. However, the failure rate of startup companies would tell you that making an 83(b) election is probably the wrong decision just as often as it is the right decision.
How expensive is it to retro an elect S corp from an LLC for last years taxes?
Per IRS Rev Procedure 2009–41, a late entity classification election is allowed up to 3 years and 75 days past the effective date of the election, assuming that no other election forms have yet been filed during that time, and that no other returns have been filed that would be inconsistent with the entity you are electing.In layman’s terms… if you haven’t yet filed the classification form (Form 8832), and you haven’t filed any returns that say you’re really a sole proprietorship or a partnership, then you can still elect to be taxed as an S corporation up to 3 years and 75 days from the date the form is filed.As far as the cost goes, there is no charge imposed by the IRS for this election. The only cost would be the cost of a professional to fill out and file the form for you… or you can file it yourself for free. The form is not difficult to complete. You can download a pdf fillable version here: https://www.irs.gov/pub/irs-pdf/.... The instructions on where to file the form are included with the form.If you prefer to have a tax professional complete it for you, I would not think it would be too expensive since it’s a fairly simple form to fill out and send in, so maybe $100-$200, depending on the tax professional that you choose to go with since hourly rates can vary from firm to firm.
How can I elect as an S Corporation without having my EIN?
You first need to:Incorporate your company. An S Corporation is a special type of corporation created through the IRS. By electing to be treated as an S Corporation, the corporation can avoid double taxation. What makes the S Corporation different from a traditional C Corporation is that profits and losses can pass through to your personal tax return. What this means is that the business itself is not taxed, only the shareholders are taxed.► First form a C-Corporation then file Form 2553 within 2.5 months to get S-election for your Corporation.Then you need to apply for an Employer Identification Number (EIN). Employer Identification Number (EIN) is a number assigned by the IRS and is used for a number of business needs including: filing taxes, compliance with IRS, opening a bank account, and applying for business licenses.If you have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), you may apply for an Employer Identification Number for free here: EIN Individual Request - Online Application.However, if you do not have a social security number, feel free to contact me at email@example.com and I can help you.Read more here: How to Get Employer Identification Number (EIN) without SSN or ITINThen you need to fax Form 2553.
How do I fill out the SS-4 form for a new Delaware C-Corp to get an EIN?
You indicate this is a Delaware C Corp so check corporation and you will file Form 1120.Check that you are starting a new corporation.Date business started is the date you actually started the business. Typically you would look on the paperwork from Delaware and put the date of incorporation.December is the standard closing month for most corporations. Unless you have a significant business reason to pick a different month use Dec.If you plan to pay yourself wages put one. If you don't know put zero.Unless you are fairly sure you will owe payroll taxes the first year check that you will not have payroll or check that your liability will be less than $1,000. Anything else and the IRS will expect you to file quarterly payroll tax returns.Indicate the type of SaaS services you will offer.
Is it possible to assign IDs on the radio buttons as soon as the page loads ?
How does one get invited to the Quora Partner Program? What criteria do they use, or is it completely random?
I live in Germany. I got an invite to the Quora partner program the day I landed in USA for a business trip. So from what I understand, irrespective of the number of views on your answers, there is some additional eligibility criteria for you to even get an email invite.If you read the terms of service, point 1 states:Eligibility. You must be located in the United States to participate in this Program. If you are a Quora employee, you are eligible to participate and earn up to a maximum of $200 USD a month. You also agree to be bound by the Platform Terms (https://www.quora.com/about/tos) as a condition of participation.Again, if you check the FAQ section:How can other people I know .participate?The program is invite-only at this time, but we intend to open it up to more people as time goes on.So my guess is that Quora is currently targeting people based out of USA, who are active on Quora, may or may not be answering questions frequently ( I have not answered questions frequently in the past year or so) and have a certain number of consistent answer views.Edit 1: Thanks to @Anita Scotch, I got to know that the Quora partner program is now available for other countries too. Copying Anuta’s comment here:If you reside in one of the Countries, The Quora Partner Program is active in, you are eligible to participate in the program.” ( I read more will be added, at some point, but here are the countries, currently eligible at this writing,) U.S., Japan, Germany, Spain, France, United Kingdom, Italy and Australia.11/14/2018Edit 2 : Here is the latest list of countries with 3 new additions eligible for the Quora Partner program:U.S., Japan, Germany, Spain, France, United Kingdom, Italy, Canada, Australia, Indonesia, India and Brazil.Thanks to Monoswita Rez for informing me about this update.
Can I incorporate my business and elect to file as an S-corp now before April and treat my business as an S-corp for last year's taxes?
First you must elect S-corp status within 2 months and 15 days of the start of the tax year when you want the election to be effective. That's per the internal revenue code. It is possible to request relief for a late election, but given that you were not even incorporated during the tax year, there is no entity to request relief for.Second electing S-corp status will not allow you to avoid ALL FICA tax only some of the tax. All S-corp owners who are actively involved in operating the business are required to be paid a reasonable salary which is subject to FICA and Medicare tax.
Can you tell me about the RTI? How do I file it, where do I fill it out, how much does it cost, and everything else?
Sharath's answer to How do I exercise my right to information (RTI act)?