ayeshahill[at]gmail.com wrote:

- quote -

Your friend must find a qualified tax adviser NOW. She
should have done that months ago.

The corporation must file federal and California corporate
income/franchise taxes (Federal Form 1120, California Form
100). The original due date is March 15, 2007 (assuming
this is a calendar year corporation). She should also have
filed employer tax forms with both IRS and EDD (941 and
DE-3) to report her salary and pay federal income tax
withholding, state income tax withholding, FICA, and state
unemployment and SDI taxes, and she must prepare and file
W-2s for herself and any other employees.

There are decisions to be made as to which of the
corporation's expenses are currently deductible and which
are organizational or start-up expenses, and elections to be
made on a timely filed return for the first year. There is
no excuse for not getting professional help. It will be
more than worth the cost.

Katie in San Diego

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

<ayeshahill[at]gmail.com> wrote:

- quote -

Depending on the facts, she may not even have "started
business" yet. One definition for when you start business
is when you start generating revenue, up until the time you
start business, you're generally incurring "start-up"
expenses which get capitalized and amortized rather than
being expensed currently. While she should have sought
professional advice sooner, she should talk to a CPA or
other professional advisor as soon as possible and
definitely by mid-January at the latest when informational
returns and other year-end filings (e.g., 941's) start
coming due.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Victor Roberts" <xxx[at]lighting-research.com> wrote:
- quote -

I believe this is the same person who posted earlier this
month saying her "friend" had paid herself money and not
withheld any taxes. The consensus work-around was to claim
the previous distributions as a "loan", issue a paycheck in
December & use the proceeds to pay back the loan. If so,
then she may well be able to stay within compliance.

- quote -

Vic's response is spot on. You MUST get professional help
asap. You must also register with the CA EDD to get an
account number and forms to make CA filings. If you haven't
yet got an EIN from the IRS, then you'll need one of those
too, although I believe you might be able to file "applied
for" in the box where it would normally go.

NOTE: I'm not a CPA. But I have run a CA corporation and
hopefully this will help you understand the process if
you're desperate and cannot set up an appointment for
professional advice before the end of the year.

The first deadline is December 31. You must pay yourself by
this date, calculating whatever withholding you'll be
responsible for. This means you'll already have understood
the Fed and CA withholding requirements. Get on it right
now.

Your next important deadline will be Jan 15. This is when
you must properly deposit the federal taxes you will have
withheld from your December paycheck. CA will be keen to get
its share of withheld taxes too, together with unemployment
insurance and SDI. The EDD will tell you when these need to
be filed; I believe it is the end of January, but check with
the EDD.

Next, you'll file a 941 by Jan 31 reporting taxes withheld.
The EDD has something similar.

Then, you'll need to file W-2s. I think this needs to be
done by the end of February. The W-2 that gets issued ends
up on your personal tax return, but the corporation must
file copies with the IRS.

Corporate tax returns for calendar year filers are due on
March 15. Do this even if you aren't showing any net income.
CA has similar filing requirements, and don't care one jot
that you've not made any money -- they'll rip you for $800
at that time, I believe.

This all quick and dirty. Do yourself a favour and take
Vic's advice very seriously. GO GET PROFESSIONAL ADVICE.
These things must be taken very seriously. If you think
penalties for messing up your personal taxes are bad, wait
till you find out what they do to employers that mess up!

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Victor Roberts <xxx[at]lighting-research.com> wrote:
- quote -

California also has an $800 minimum tax, which must be paid
even if the corporation made no money at all or had a loss.
I don't do returns, so I am not familiar with which form
that goes on.

Stu

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

ayeshahill[at]gmail.com wrote:

- quote -

I am not a tax pro, but as an owner of a small C Corporation
in NY I know that if your friend's company was incorporated
in January 2006 and she took any salary and has not yet
filed any Federal tax forms, specifically Form 941 Quarterly
Returns, and withheld income taxes from her salary and
deposited that withheld tax to the IRS, she has already
missed three deadlines. She probably also had an obligation
to withhold and deposit taxes and file quarterly returns in
California.

She should see an accountant this year, that is this week,
and learn about her filing obligations.

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

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

California C Corp taxes ...pls help

My friend has a C Corp Startup Incorporated in California which
has no revenue only expenses.
Incorporated in Jan 06.

Some details:
- This is is the first year of operation.. she recd some small
amount of funding.
- Calender year tax period.
- She took a small salary.

What are the tax forms, schedules she needs to fill in and what
are the due dates - for federal and California taxes.
We are totally ignorant.

Any help would be highly appreciated.

Thanks in advance,

Ayesha Hill

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >