Yep, C corp, calendar year, bank account, property transfer
and books...

Thank you all for your prompt answers!

--
jeff

..

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ude[at]thenet.com wrote:

- quote -

It isn't that simple. You must file two returns but not
necessarily two for 2006.

You file as a sole proprietor, on Schedule C, for the 7
months prior to incorporation. Everything after that must
be reported on the corporation's return.

However, the corporation does not have to adopt a calendar
year, unless you elect S corporation status. A corporation
can establish any fiscal year it chooses. The only
requirements are that the year must end at the end of the
chosen month or on a day of the week that bears a specific
relation to the end of the month (i.e. the last Saturday of
the month or the Saturday nearest the end of the money.)

The corporation makes the election by filing a timely return
for the chosen period. Timely returns are filed by the 15th
day of the third month following the close of the year.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

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<dude[at]thenet.com> wrote:

- quote -

You will need to file as a sole prop (Form 1040 Schedule C)
for all operations as a sole proprietor during 2006. You
will also have to file a corporate tax return (Form 1120 if
C corp) for all operations as a corporation during 2006.
Therefore you will have BOTH a Sch C and a corporate tax
return for 2006. The corporation will begin on August 1.
The sole prop will end when operations are completed.

I know these were not part of your original question, but
your question makes me wonder if you have thought about the
following-

Are you a C corp or an S corp?
Did you open a new bank account for the corporation?
Don't forget that you will need to do payroll for the
corporation.
How to move any capital assets used in the sole prop over to
the corp?

You may need a local tax advisor to assist you with these
and other issues involved in the conversion.

--
Charles M. Shanes, CPA
Charles M. Shanes CPA, LLC
Richmond, VA
QuickBooks ProAdvisor
Microsoft MPAN Member for SBA
www.shanescpa.com
cshanes[at]-Delete-This-Nospam-shanescpa.com

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ude[at]thenet.com wrote:

- quote -

Both, Schedule C for the period from Jan 1 through the date
of incorporation and a 1120 for the period between the date
of incorporation and the end of the year. There will be
certain items carried over from one business entity to the
other, so you should get professional help.

Been there, done that.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

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<dude[at]thenet.com> wrote

- quote -

Both. Schedule C for the first 7 months, and a corporate
return for the last 5 months. Now, if you elected "S"
status, file 1120S, if not, use the regular 1120 or 1120A.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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dude[at]thenet.com wrote:

- quote -

I assume you kept proper books for the 7 months you were
operating as a proprietorship so no problem there.

But when the corporation was formed, did you do what is
necessary to transfer property, purchase stock, have a first
meeting, elect officers, etc?

There are times we've seen where a person gets an attorney
to form a corporation, but that is all that is done. The
corporation must have a proper set of books. Talk with
your attorney first and your accountant, next. Or if you
dont' have an accountant, hire one.

ChEAr$,
Harlan Lunsford, EA n LA

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dude[at]thenet.com wrote:

- quote -

Both. You will attach a Schedule C to your form 1040 for the
1st 7 months of the year and your corporation will file a
form 1120 for it's first year of operations beginning on
August 1.

I strongly urge you to consult with a local tax professional
who specializes in small business tax issues.

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dude[at]thenet.com wrote:

- quote -

Your sole proprietorship would be reported on Schedule C
"Profit or Loss From Business".

As an employee of the corporation, which files its own
return (1120), you'd report income, received as wages, on
the Wages line of your personal tax return. If the
Corporation were to issue dividends, they would be reported
as such on your personal tax return. The C Corporation
would file Form 1120 to report its income, expense, and tax
(if any).. A "short year" would be reported on March 15th,
2007. If you have a tax year, other than that which begins
on 1/1 and ends on 12/31, your return would be due on the
15th day of the third month after the end of your tax year.

If you were to be filing as an S-Corporation, the above
guidance would be somewhat different!!!-

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<dude[at]thenet.com> wrote:

- quote -

Yes. Sole Prop through July and then the corporation take
over.

--
Phil Marti
Clarksburg, MD

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I was a sole prop for the first 7 months of this year, then
incorporated effective 1 August.

Do I file as a sole prop or C corp for 06?

Thanks in advance!

--
jeff

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