Questions tagged [corporation]

a generic tag for company with shareholders. There are some specific tags for specific company types like limited-liability-company, s-corporation, limited-partnership, sole-proprietorship,

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64 views

Benefits of being paid as corporation - USA

I see a lot of articles describing how many corporations (notably Amazon) pay minimal/zero tax. What prevents me from having my employer pay my salary to a corporation I set up and having the corp use ...
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1answer
27 views

Converting a personal business into a Company & its taxation advantages

I've often read opinions about taxation advantages of converting a personal business to a company but a point which confuses me is wouldn't the lower corporate tax rate be offset by the income tax ...
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Seeking Equity Split Advice between four co-founders, two of them who have invested money and two who haven't

Founder A,B,C,D are equally responsible for the execution and the idea. At the pre-development stage, Founder A invests $12,500 and Founder B invests $7,500, whereas Founder C and D aren't investing ...
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How to report a C corporation's post-dissolution expenses?

We're filing 2019 Form 1120 for a C corporation (XYZ Inc). In January 2017 my cofounder and I incorporated XYZ Inc in Delaware and registered it as a foreign corporation in Connecticut. We dissolved ...
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30 views

Are IRS § 1032 and 118 redundant to each other?

118: In the case of a corporation, gross income does not include any contribution to the capital of the taxpayer. This is a bit cryptic, but based on the definition of "capital contribution", I ...
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1answer
179 views

Does it make sense to set up a corporation in Ireland to protect your wealth?

I am 25 years old, from Ireland, and am looking at getting started investing in the stock market. I’ve started reading Rich Dad Poor Dad. One of the main pieces of advice given in this book is that ...
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13 views

DTAA applicable when an Indian owns a C Corporation in US?

I'm an Indian citizen residing in India. I'm getting ownership in a US C Corporation based on my contribution in the product development. There will be no capital investment from me. I'm negotiating ...
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1answer
182 views

Is it legal to issue free stock? [closed]

Are there legal obstacles to issuing free stock? Along with no promise of any return. Do you still need to be a corporation to do so? The money comes from payments made elsewhere for products and ...
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4answers
692 views

When first incorporated, I created 100,000 company shares worth $1 each. What does this mean?

When first incorporated, I created 100,000 company shares worth $1 each. What does this mean? Does the value mean anything? Because I just started, no capital was paid. Do I also have to pay Capital ...
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1answer
110 views

Corporation Tax Help?

I’m hoping some of you may be able to help, as I am not very well versed in the tax department. Here’s my situation: Last year, I started doing work for a company that required us to be self ...
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51 views

Should I create a corporation, even if I won't make money or receive funding until later? [duplicate]

Suppose I may not be profitable, make any money, or receive funding for another year. Should I still create the business entity now?
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1answer
135 views

If I plan to get investments later, should I start a C Corp now? Or LLC then convert to C later?

Should I start an LLC then convert later once it is time for investments? Or just start as a C-Corp now? At the moment what I have are open source software tools, and ideas on how to monetize them ...
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59 views

What benefits and risks do American C-corps have for investors in Europe?

In Europe the start-up investor climate seem quite different from what investors and entrepreneurs experience in the US. As I am being part of a few different EU based startups I am confronted with ...
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2answers
200 views

Are wages from a corporation always immediately tax deductible? [closed]

Suppose a corporation which constructs apartments and rents out those apartments expects to start earning money in its fifth year. Can it then just increase construction in that fifth year to create ...
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3answers
345 views

$10,000 was accidentally transferred to me instead of my company

As a result of a business competition we won for school, $10,000USD was transferred from my University's Accounts Payable department, to me. It should have been transferred to my business, a C-...
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1answer
81 views

Why 1099-MISC for LLC but not a corporation?

I have a couple side gigs, and every January I get a little annoyed because I need to send out 1099-MISC forms for various payments to contractors and the like. According to IRS rules you must send ...
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44 views

What are the US tax implications of owning a controlling stake in a UK private limited company?

I'm currently a US resident alien. What are the tax implications of owning a controlling stake in a UK private limited company? It is unclear how complex filing is and what financial implications ...
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1answer
59 views

Can I purchase and sell a property through my c-corp if I have a personal tax lien with my state?

I would like to execute a simple contract assignment (double closing) on a real estate deal. The initial title work came back an there is a lien against me personally for taxes owed to my state. I ...
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1answer
242 views

Why is investment income generated in a corporation taxed at a higher rate than when it is generated for an individual?

I often have a hard time understanding my accountant so I ask others to interpret what he said. I welcome insight from experience gained in any country with similar tax laws (doesn't have to exactly ...
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0answers
204 views

ISIN - First 2 Letters : Issuing Country vs Domicile Country

I have a question regarding how the logic in the ISIN structure work for the first 2 letters. It is mentioned the following : The first two characters are the alpha-2 country code, in accordance with ...
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1answer
166 views

Where is my principal place of business UK based?

I am in the process of setting up a company and trying to research everything before making the first step. Though I do not live there, I intend to register the company at my parent's address so that ...
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2answers
843 views

Bank loan responsibility for corporation partners

I own 25% of a small corporation. My partner (who owns the other 75%) and I took a loan with a bank (TD). We both had to give personal guarantees. Am I only responsible for 25% of the loan? If we go ...
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1answer
47 views

What does it mean on a 10-K balance sheet when a field is blank for a single year?

I am looking at a corporate balance sheet in a 10-K for Chipotle and the line for Long term investments is $125b for 2016, but blank for 2017. What does it mean when a company doesn't list this info ...
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1answer
123 views

Does market cap include ALL shareholders, including a company's founders and largest institutional investors?

If a given company has a $100B market cap, does that include all of its shares, or is that only the ones which are publicly traded? Are the founders' shares included in the count, as well as those ...
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2answers
1k views

Is there a standard ratio of preferred shares to common shares in a company?

I'm confused about how common and preferred shares coexist. Is a single preferred share always equal to the same amount of the company as a single common share, or does a preferred share somehow ...
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1answer
188 views

Are the CEO's earnings different from the company's earnings?

I am a resident of Ontario and I am planning to go to University in September. Upon applying for OSAP I was asked what my monthly salary while in school will be (excluding time away from school). I ...
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1answer
370 views

Difference between Property/Casualty and Personal Auto insurance

I’m looking for distinct differences in Property/Casualty Insurance and Personal Auto insurance. Im analyzing various insurance companies and their respective loss, expense, and combined ratios and ...
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1answer
57 views

How to ask investment for one saas product of many? [closed]

I have a company that will have many saas products under it . For now if I ask investment, do I have to offer equity of company just for that one product? Is there a way I can offer equity of just ...
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1answer
221 views

My software business makes nothing for years, then a big chunk of money all in one year. Is a C-corp the best structure for tax purposes?

I make video games by myself for a living. This process involves many years of unpaid work before a game is released, and then a sudden "windfall" type wave of money when the game finally comes out. ...
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3answers
291 views

What is the advantage to a company (airline, retailer, etc.) of having a branded credit card?

I enjoy the benefits of an airline's "signature" credit card: miles per dollar spent, an annual travel incentive, waived fees, and the like. I wonder what the airline gets out of the deal.
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3answers
5k views

If a company that doesn't pay dividends makes a large profit, where does it go?

Does the company have a responsibility to reinvest all of it? Can a company have a lot of money just sitting around? Is that grounds for shareholders to sue? If a company has a lot of money just ...
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2answers
80 views

Are reinvested profits still “profits”?

Let's say I run a restaurant for a quarter and the cost of a served meal includes the ingredients, service labor, and utilities and monthly mortgage payment for the restaurant building, totaling $8.40....
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1answer
50 views

Corporate Coverdell ESA Tax Liability

Say John has three kids, Alice, Bob, and Carl, and sets up an ESA for each child. Also, John's income is too high to contribute to the ESA himself. Can he have a non-deductible corporate contribution ...
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0answers
349 views

Tax rates when C-Corporation pays salary to the owner who is non-US resident & non-US citizen

I am non-US resident and non-US citizen (i.e. NRA, nonresident alien). I would like to open C-Corporation in Florida. I would be the only owner and shareholder of the C-Corp. I know what are the ...
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3answers
3k views

Where can publicly traded profits go but to shareholders via dividends?

Some companies don't pay dividends. Some companies accumulate money like the offshore "exiled" or expatriated cash piles of the likes of Apple and friends. So I suppose that corporate profits can be ...
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1answer
157 views

Dormant company, never paid taxes, never traded in UK - should I have notified the HMRC?

I opened a LTD company for a startup, in order to reserve the company name, back in 2013. I sat down with a freelance accounting (whom I am not in touch with)to set the company up. He informed me that ...
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3answers
6k views

CEO entitlement from share ownership?

If I own shares of a company, am I entitled to apply as position of CEO? Who decides? Do I have more clout within the corporation to gain positions of work in the company than a non-holder? What kind ...
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2answers
189 views

How could this sort of bankruptcy fraud be caught?

Somebody I met claims that some 'shady' business owners out there can create a company with the purpose of paying for an expensive service - then make that company file for bankruptcy to avoid paying ...
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0answers
399 views

As a US citizen, how can I live in Austria, do business with the US, and set up my business in a legal, tax efficient manner?

I am a US citizen, and professionally I am an independent software developer contractor. I want to live in Vienna, Austria but still contract with companies from the United States and work remotely ...
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2answers
189 views

Why be a nominal shareholder in an ASX listed company?

I bought a copy of the share register for an ASX listed company today, and I was surprised to see around a hundred entities holding some nominal number of shares (usually one). In fact, I found about ...
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2answers
115 views

Can credit worthiness be transferred from me to a business?

I'm interested in incorporating in order to put my rental business under a business umbrella. Right now it is just me (no business papers, but I report income to the IRS). I am wondering: can my ...
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1answer
44 views

Tax Setup on United States bank account(s)

I have a single-member LLC with several bank accounts for the LLC. Currently, the tax return for this company is included on my personal 1040 (under my SSN) using a Schedule C. I happened to notice ...
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2answers
4k views

What does this diagram from Robert Kiyosaki about corporations mean?

I am trying to understand this diagram of corporations from "Rich Dad Poor Dad." I can't really make sense out of this diagram.
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1answer
79 views

Saving personal income tax from job using corporation

Is the following way of saving income tax legal? Lets suppose my annual salary is $1M/year from a job. In order to save taxes on various items like car and regular expenses like lunch, I make a ...
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2answers
196 views

What happens if a company I have stock in is bought out?

What is the practical consequence of a buyout for a retail stockholder? Does the broker automatically sell the stock for them? What if their asking price is higher than the buyout number? Do smaller ...
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3answers
10k views

Who receives the money when one company buys another?

I read this article about Bayer buying Monsanto. The question which came to my mind was: Who receives the money? If Monsanto receives the money, and Monsanto becomes part of Bayer, then doesn't ...
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1answer
117 views

What does “Income generated in the U.S.” mean?

Quoting from Stripe.com - Incorporation - Why should I incorporate in Delaware?: [...] Pay federal income tax on income generated in the U.S. Does that mean I cannot do any business with any ...
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1answer
135 views

Taxes on dividends for non-resident aliens

I'm thinking of forming a C-corporation in the US that will provide consulting services. Providers ("workers") will initially be located overseas, so technically the company will not have any ...
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1answer
74 views

Do Affordable Care Act business requirements apply to “control groups?”

The Affordable Care Act (a/k/a Obamacare) imposes certain requirements, restrictions and obligations on business entities. For example, businesses that employ over 50 full time workers must ... etc. ...
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1answer
143 views

Is stock in a private corporation taxable?

If I start a private corporation and it gets a large equity injection from an outside investor, is this taxable in any way, or is it not until I get paid a salary or get a disbursement from the ...