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PDF Editor FAQ

Tax Accounting: Should I resurrect an S-Corp, or create a new entity?

If you have the NC corporation do business in CA, it will need to register in CA - i.e., every year you will need to register the corporation in both states and pay fees and taxes accordingly.It makes more sense to have a CA corporation do business in CA (and, presumably, to ignore or dissolve the NC corporation). Please see "Doing Business in CA? Be Sure to Register" at .The High-touch Legal Services® Blog • For Startup Companies

Do you think a consumption tax would be better for our economy than an income tax?

A consumption tax would be like a sales tax - of about 30%, if it were to eliminate income tax. Here’s how it would work.Year 1 - the government introduces a national consumption tax, but says it will have to be phased in. The new NC tax is introduced at 5%. Income tax is cut by 5%.Year 2 - the NC tax is bumped to 10%, income tax is cut by 3% and tax on capital gains is abolished.Year 3 - the NC tax is bumped to 15% and corporate tax is reduced to nothing, but there’s no cut in income tax this year.And so on until …Year X - NC tax remains at 30%, but because the deficit is too high the income tax rate is increased by 5%.Year Y - NC tax remains at 30%, but income tax goes back to its year 0 level.Ask the Brits. When their VAT (consumption tax) was introduced it was supposed to replace income tax. Now their VAT rate is 25% and income taxes are still at pre-VAT levels.

Are there additional reporting requirements for an S Corp beyond filing a corporate tax return and paying the annual fee to the state (NC)?

State and federal corporate returns, state declaration of net worth, state franchise tax return, and state and federal payroll returns, for starters.Retain a local tax professional for guidance specific to your situation.

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