Anthony wrote:

- quote -

snip

You should consult a professional tax advisor BEFORE you
organize any kind of entity. As Dick Adams said, you sound
like an employee, not an independent contractor. Even if
you are an independent contractor, there is no point in
organizing an LLC or corporation in Nevada. Since you are a
resident of NY, all of your income will be taxable in NY,
whether you receive it directly or through a flowthrough
entity. There is nothing to be gained by organizing in
Nevada.

If you are an independent contractor, as of today you are a
sole proprietor. That's where you get the income to pay a
qualified tax adviser. Do it today.

Katie in San Diego

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

- quote -

Filing to become a Nevada Corp is a good idea.... If you
live and only do business in Nevada.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

rdadams[at]smart.net (Dick Adams) wrote:
- quote -

Agreed. But if he sets up a corporation, he'll be the
employee of his own corporation, which will be a contractor
for the bank.

- quote -

Can't argue with that. Go see a qualified CPA or EA to
determine the form of business that's best for tax purposes.
Does a Nevada corporation get you anything over a NY
corporation, or is it needless additional paperwork with no
benefit? Probably not.

Stu

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Anthony <AnthonyPaulO[at]hotmail.com> wrote:

- quote -

You and they are in for a shock if the IRS audits them. You
look like an employee to me.

<snip
- quote -

Your fellow consultants are ignorant and misinformed. You
could get better advice from a bartender.

< remainder snipped
<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Hello everyone!!

I've been searching for some info on the internet regarding
incorporating but am running into conflicting opinions; here
is my current situtation (please bear with me if I am too
verbose but I do not wish to miss an answer for lack of
information) :

===== INFO =====
I am a computer programmer, I live in New York City (born
and raised), and I work for a bank also located in New York
City. The bank has hired me as a consultant for a possible
five-year contract, of which I have worked one month so far.
I perform programming services for them entirely at their
offices using their equipment. I currently earn $700/day
(fixed daily rate) and work 5 days a week. I also own two
cars, one of which is a 2003 ($40,000) model on which I owe
less than $5000 and the other a 1992 ($2000) model which is
fully paid. I am a single 32 year old man, never married,
and have no kids. I also have no house or other large-budget
items that would be considered net-worthy other than my
computer equipment and cars.

===== GOAL =====
Other than the obvious, which is to maximize profit and
minimize taxes (of course!) :

1) Work as a programmer consultant as my main form of income.
2) Save enough money to buy my first house in one years time
(I wish to seriously start investing in real-estate.)

I expect my total (personal) yearly expenses not to surpass
$25,000 for the first couple of years.

===== SOLUTION? =====
I was told by fellow consultants to file for a Nevada Corp
(any type except LLC) and go S-Corp as soon as possible. So
far I have recently filed for a Close Corporation
incorporated in the state of Nevada. I am now in the middle
of filing for an EIN but am not sure how to classify my
corporation (should I choose Corporation or Personal Service
Corp?) If I choose Corp, what is it asking for by "enter the
form number to be filed"?

I guess my question is, is this the way to go given my
current situation? If so, does it matter which one I choose
if I am going to apply for S-Corp status anyway? If not,
what are my alternatives given my situation and goals? Also,
I was wondering if it is worthwhile to have my corporation
purchase any investment real-estate rather than me
personally... would that yield any financial tax-saving
benefits (such as provide an office, minimize corporate
profits, etc??) or would my owning my own home as an
individual be much more beneficial?? I have never seen this
mentioned anywhere.

To all who can contribute their 2c worth, thank you very
much for your time!

Sincerely,

Anthony

p.s. I am very much aware that advice on the internet is no
substitute for a good accountant. At the moment, however, I
need some initial advice in order to start up my corporation
so that I can receive the funds from which I am to pay for
the services of said accountant!

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >