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Old 24th August 2005, 05:24 PM
sg1973 sg1973 is offline
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S-Corp Qs

Hello All,
I recently got my green card and I am thinking of floating a company, mostly S-Corporation. I have a few questions on how to approach it. I find visitors to this forum, like ****, very helpful and knowledgeable so I thought of seeking their help.
Just a little info on my back ground, I am currently employed by a consulting firm and I am planning to be on my own in the next couple of months.
I am planning to use this new company for consulting through it on a corp-to-corp basis for myself or my wife.

My questions are:

1. Which state do I file this company? We currently reside in New Jersey and I work in New York. I am wondering if we can file it in Delaware and if it is the right choice. I don't think I would be staying in NJ for no more than 2/3 years, I am wondering if it’s ok to file from DE? '
2. I read some where that it’s always beneficial to have the women head the corporations? Is that correct? I heard women-owned corps don't need to pay the minimum taxes every year unless you generate some revenue. If my wife owns the company, can I take up any positions in it?
3. Finally, how does it work if I join someone as a full-time employee? Can the company still exist and if so, how does the taxation work then?
4. Also I was told if we have a company, any expenses towards running it, like acquiring office space etc, are tax exempted. Is that correct? If so, could someone provide more information on what is deductible and what is not?


Thanks in advance for your help.

Regards,
SG
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Eb3 PD Oct 2001
140/485 ND 06/23/2004
140 AD: 09/30/2004
485 AD: 06/2005
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Old 24th August 2005, 06:19 PM
sg1973 sg1973 is offline
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Join Date: Jul 2003
Posts: 99
****,
Thanks a lot for the information.
1. State: I agree that we need to pay in all the states we do business in. However, if we are into consulting where we are on temporary assignments in various states, do you think we still need to pay the taxes in all the states we do consulting in? If so, I am not sure if we want to tie down to one specific state. Even if we open a company in NJ and then work in NY, we still need to pay NY taxes. In that case, I guess DE is better option over NJ.
2. Company Ownership: I don't think we are planning to use the company beyond doing our consulting. I know lots of small consulting companies have the women own the company. I was trying to what the benifits are to have my wife own the company. I don't think we will have any major decisions that will be difficult for her to handle.
3. I don't mean to run this company on the side when I take up fulltime employment. However, I wanted to know if the company can exist without generating any revenues or may be with revenues but myself not as owner of the company?


Thanks again,
SG
__________________
Eb3 PD Oct 2001
140/485 ND 06/23/2004
140 AD: 09/30/2004
485 AD: 06/2005
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