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What Other Docs Do I Need to Start?
Docs Do I Need to Start My Business?
To get a tax id - a lot of the questions that the irs agent asks
pertain to your past - such as whether you had other corporations in the past
Some comments about the
questions in the form:
Enter the first name, middle
initial, last name, and SSN of a
principal officer if the
business is a corporation;
The only hard question is about tax year end –
that is accounting year.
Here some more about the question: “Enter
the last month of your accounting year or tax year.”
There are two: 1.
Calendar year and 2. a fiscal year. If it is a calendar year, it lasts for 12
consecutive months and it ends on December 31st; if it is a fiscal year, it
lasts for 12 consecutive months and ends when you want it to end. In your
case, you may want to choose a fiscal year ending on December 9th - one year
after your filing of the corporation but it depends on your individual
situation. If you want to ma
I would choose the fiscal
year, so you will not have to file for taxes this year - since it is almost
over. If you just starting you business, and you have a lot of expenses and
losses, it might be wise to choose a fiscal year and offset you income that you
will make later in the year when your company becomes more profitable.
However, as an “S” you may
need special permission because if you are the sole proprietor of your “S”, it
is assumed that a calendar year is used (because the business tax go through
you own personal tax and you, like most of us, operate on a calendar year.
However, that depends on
whether you want to say that you business started at an earlier time and you
incorporating now. The rules
remain complex and you should refer to your accountant for specific advice.
It is your choice and you may be more familiar how tax considerations affect
Anyway, you can change
from calendar to fiscal and vice versa.
Making changes in
your accounting period.
If you want to switch from a calendar year to a fiscal year (or vice versa),
you'll need permission from the IRS, and to get that, you must demonstrate to
the IRS's satisfaction that you have a valid business purpose other than tax
avoidance. In most cases, a seasonal business would be able to show a valid
business purpose for using a fiscal year. You can request IRS approval by filing
Form 1128, Application to Adopt, Change, or Retain a Tax Year.
Except in unusual cases, once you have received permission to change your tax
year, the IRS will not allow you to change it again within 10 years.
For question “8a Type of
Entity” choose “other corporation” and write subchapter “S”
You need the above
incorporation info to use when you talk to the irs agent to get your federal tax
id. I included a tax id form with this email. You may want to fill it so you
can answer the questions - then you don't even have to send the form to the irs.
They will tell you the # and then send it to you by mail.