Starting a new company

[buss_start]

Hi,
I am planning to start new consulting company. Can anybody tell me the cost involved. Also what are the monthly costs involved to manage the company if company is not making any profits.


Appreciating your help in advance

[buss_start]

Initially I am looking to work for myself. I will be doing software consultancy. I guess I don't have to buy any office space. I am not sure how much typically I have to spend in registering the company ( Legal form : Incorporation ). After that how much are monthly expenses (e.g. business taxes etc.) even if I am not generating any revenue.

[buss_start]

Thanks a lot **** !!!

[malneedi]

As a business owner I can tell you that you don't have to pay single penny as long as you don't make any profit. Tax issues will come only if you are making any money or you are taking any salry from the company.

[Kudiyan]

Originally posted by ****

If you operate as a sole proprietor, it usually doesn't cost anything. You just write invoices, and pay taxes on that. You usually have to pay quartely estimated taxes. At tax time, you get 1099s from your customers, and you can of course deduct any business expenses from your business income. You need to file Schedule C (Profit or loss from business) with your tax return.
It is advisable to have a different bank account and creditcard for the business to separate business and personal expenses and income.
All the complicated stuff only applies if you actually have employees and/or expensive inventory, or if you incorporate the business. With incorporating, you need to have bylaws. This is usually done through a lawyer, and can cost you a couple $1000. You also would need a tax id, and possible a business permit from your city in this case.

Oh, and while it may be ok to have more expenses than income originally, IRS eventually wants to see some profits (and taxes paid), otherwise they can end up declaring the business as a hobby, and expenses for hobbies are obviously not deductable.
You should also get a tax accountant (look in the phone book under CPA). They know all this stuff.

****/Malneedi,

You guys mentined about sole propritor/Inc. what about LLC ?

[ark-r]

I'm also in the same boat; planning to start my own consultancy. These are the things I wanted to do.

-I need to work thru my own company
-I need to process couple of H1Bs.

Could you please let me know what kind of company (LLC,inc etc) will be suitable for me ? I'm not planning to process lots of H1Bs.
Also could you please tell me what are the procedure to start it . where to apply, how etc.

Appreciate your help and time

Thanks
Ark-R

[GCWORLD]

Depeding on the state where you register the compnay, you have to pay Min tax. even though no profit was made in that financial year.