Questions? What to do?
My sister is trying her hand at a startup in Northern California. She has a C Corp. - incorporated - January 06. Only 2 shareholders. No income, only expenses. What are her obligations wrt to Federal and CA state taxes?
Does she have to file any forms frequently during the year?
What about the end of the year?
Any taxes to pay?
State tax? or federal tax? to pay by April 17th 2006?
Pls help.
Thanks Anna
First of all, she should ask the accountant that recommended that she incorporate. If she didn't ask, that may not be the best way for her to do business.
Same as anybody else's, except that California has a minimum franchise tax of $800 per year that she has to pay. Whether she makes any money or not.
Aside from tax forms there's a form called Statment of Officers that has to be filed, I think every other year unless there's a change in the officers.
Depends on her fiscal year. If it's the calendar year, she files for 2006 in 2007. But her tax preparer would be the best person to ask. Stu
Best advice is to contact a local CPA and/or attorney that handles small businesses. Since you're posting here and probably not interested in doing that, spend about $20 on "Incorporating For Dummies" book (the actual name name of the book is not exactly that but it's something to that effect) and it will walk you through the questions you've asked above plus a whole lot more you haven't.
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