Business 101 questions Don't want this to get lost in the thread

[gdtobefree]

Forming a corp requires you to file taxes on any income the business has, Doesn't the business have to generate a Schedule C in order to apply for any credit cards, loans or lines of credit? The corp has to have some kind of income to back the apps you put out there ither then net accounts.

If your SS # goes on the app for an EIDN  and you use your EIDN How is it NOT referenced to your SS# and current CR?

I spoke with a CPA today and he explained that a seperate credit file cannot be done just because you incorporate, you will have taxes to pay at the end if the year, you will have to file a return even though you do not generate income, the IRS will have your EIDN and your Corp on their files at the Sec of State sends your documents to the IRS as well.

Someone clear this up for me because I DO run a business, I have never Incopr or LLC the Company I have been operating off my SS# for 9 years.

[gdtobefree]

Bump

[gdtobefree]

bump

[llecs]

Sched C is tied into your name and your SSN. I think if your are incorporated you use form 1120 and report on there officer income and give yourself a W-2 (as an employee of that corportation).

Your CPA is correct.

The EIN is referenced to the SSN, but IRS doesn't reference that back to the CRs. Thankfully, our tax dollars not at work.

I am a sole-prop in biz for 12 yrs or so. I use an EIN provided by the IRS in apping for biz credit. I also have it reserved for when I hire any employees, if ever. When I file 1040, I just claim the income from the biz on sched. C. When the 940s, 941s come in the mail, I report back no activity.

[Anonymous]

What you are is a "sole proprietor"

These taxes get filed with your personal tax returns-

The CPA should be able to explain the advantages and disadvantages of this-

You are personaly on the hook for any liablities of the business.

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gdtobefree wrote:

Forming a corp requires you to file taxes on any income the business has, Doesn't the business have to generate a Schedule C in order to apply for any credit cards, loans or lines of credit? The corp has to have some kind of income to back the apps you put out there ither then net accounts.

If your SS # goes on the app for an EIDN  and you use your EIDN How is it NOT referenced to your SS# and current CR?

I spoke with a CPA today and he explained that a seperate credit file cannot be done just because you incorporate, you will have taxes to pay at the end if the year, you will have to file a return even though you do not generate income, the IRS will have your EIDN and your Corp on their files at the Sec of State sends your documents to the IRS as well.

Someone clear this up for me because I DO run a business, I have never Incopr or LLC the Company I have been operating off my SS# for 9 years.

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