14

No, your friend would not be eligible for EI under these conditions. In order to claim EI, your friend must certify they are "ready, willing, and capable of working each day". As your friend is doing contract work, even though they are not drawing money, they do not meet the criteria. Claiming EI while working a contracting job would be fraud, and is most ...


7

There are many options when it comes to choosing a registered office address. I personally used one of the many companies that offer a "Registered office Service" so that I had a Central London address for my company and then paid to have any mail forwarded to me. Type "registered office services uk" in google search and you will see a list of the many ...


6

Articles of Incorporation are used to help verify that your business is actually a business, and that it has the name you claim it has. There are quite a few entities that may wish to verify your business. For example, many banks that you wish to open a business account or loan with will likely request articles as a prerequisite. I've even had potential ...


5

They believe that it reduces the risk that Revenue Canada will deem you to be an employee and make them pay a whole pile of tax, EI, CPP and so on that should have been paid if you had been hired as an employee. It's my recollection that the employer gets dinged for both the employee and employer share of those withholdings (and generally the employer's ...


4

No, the deadline is for existing LLC/C-Corp to chose to be taxed as a S-Corp for the tax year 2013. You haven't form a corporation at all, so its irrelevant for you. Once you do form your corporation (i.e.: file the relevant documents with your State agency responsible - Secretary of State/Department of Corporations etc), you have 75 days to have the ...


4

There is not a legitimate reason to respond to an unsolicited message from a stranger. Why don't you ask that person to justify their request?


3

If you're creating an S-Corp for consulting services that you personally are going to provide, what would it give her to have 50% of the corporation when you're dead? Not to mention that you can just add it to your will that the corporation stock will go to her, and it will be much better (IMHO, talk to a professional) since she'll be getting stepped-up ...


3

Sorry, wrong number. With your own business, you can file a schedule C and take off expenses against that income. With the new tax code, there may be some advantages to incorporating, but an LLC will not provide those benefits. For tax purposes, an LLC is a pass-through entity. An LLC can help provide a layer of protection against lawsuits. Let’s say you ...


3

Supposedly this also means that I am free from having to pay California corporate taxes? Not in the slightest. Since you (the corporate employee) reside in CA - the corporation is doing business in CA and is liable for CA taxes. Or, does this mean I am required to pay both CA taxes and Delaware fees? (In this case, minimal, just a paid agent from ...


2

So long as that $50k does not include any income from transactions occurred before your company was incorporated, then I think this is OK. When we incorporated my wife's business, we had customers who were near the end of their contracts, so we didn't bother to have them change their direct debits from our account to the company account. There was no ...


2

You should consider consulting a qualified tax expert with relevant experience (i.e. for corporations involved in investing/trading.) FWIW, it's quite possible that conducting your trading inside of a corporation might not save you any tax at all. Have a look at this article: The Blunt Bean Counter: Should your Investment Income be Earned in a Corporation. ...


1

In the US, to reduce your tax rate, you can create an LLC taxed as an S-Corp. You can structure your compensation in two ways: Salary. This is taxed at the normal rate. The key thing is that you must pay yourself a "reasonable" salary. You can't underpay yourself. Dividends. This is taxed at a lower rate and reduces your overall tax burden. ...


1

A U.S. S-corp doesn't allow foreign owners while a U.S. partnership does. But the partnership requires a withholding and filing of U.S. taxes for foreign partners. Then those foreign partners might also owe home country taxes. A U.S. C-corp is the best type of U.S. company for foreign partners. Taxes are no problem to the shareholders if no dividend is paid....


1

This is only an answer to the Bonus Question - I just stumbled upon this article: Can a Shareholder Be an Independent Contractor to Their Own Company? So, apparently, this has been tried before. I think the gist of it is that: ... the courts will examine the contractual relationship or the behavior of the parties, such as were invoices issued and whether ...


1

Are you willing to personally guarantee any loans that your company takes out? If so, then your credit rating will help the company. If you want to keep your finances completely separate from the company, then there's no reason for anyone to consider the company any more creditworthy.


1

Technically, it's only when you need to pass money through. However consider that the length the account has been open builds history with the financial institution, so I'd open ASAP. Longer history with the bank can help with getting approved for things like business credit lines, business cards, and other perks, though if you're not making money with that ...


1

In addition to asking an accountant, I would also ask a lawyer. When exploring the same question for myself, I found that one of the benefits of incorporating or forming an LLC is that your personal assets are better protected. Including asset protection, here are 5 reasons to incorporate: Personal asset protection Additional credibility and name ...


1

There are many aspects to consider in deciding what sort of company you want to form. Instead of an S-corporation, you should determine whether it would be better to form a Limited Liability Company (LLC), Limited Partnership (LP) or even a professional company (PC). Littleadv is correct: There is minimal benefit in forming an S-corp with you and your wife ...


1

If you start an LLC with you as the sole member it will be considered a disregarded entity. This basically means that you have the protection of being a company, but all your revenues will go on your personal tax return and be taxed at whatever rate your personal rate calculates to based on your situation. Now here is the good stuff. If you file Form 2553 ...


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