ge wrote:

- quote -

Yes, you can do that.

However, to be squeaky clean about it, make sure the
corporation pays you with applicable withholding taxes, thus
treating you as an employee, and not as a subcontractor.

Cheer$,
Harlan Lunsford, EA n LA

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I have two sources of income: consulting work that I do (as
a a sole proprietor) for an out-of-state company, and
distributions from an S-Corp (I am part-owner), which
receives royalties from sales of a product that we designed.

I have a possibility of getting some other consulting work,
in this state (NY). However, this customer says that NYS is
very aggressive WRT worker's comp: that MY audits the
company's vendor payments, and, for payments to individuals,
requires that the company pay worker's comp for that person
- ie, that the person is "an employee for purposes of
worker's comp."

To avoid this, the customer would like to make payments to a
corp. Can I do this through the (existing) S-Corp? That is,
invoice the S-Corp in my name, and then have the S-Corp
invoice the customer 'corporately'. Payments would be
expensed to me, and I would pay, and would show up on my
schedule C.

So, all taxes would be paid, the S-Corp wouldn't be harmed,
and the worker's comp charges would be avoided?

TIA,
George

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