Posted by Carey_PA on February 24, 2001 at 22:01:13:
SPD,
My advice is to go with your accountants advice. You can always create other corps in the future as
C-corps, LLC’s, S-corps, etc. Or, I believe you can go back to an C-corp. BUT I COULD BE WRONG, BY NO MEANS AM I AN ACCOUNTANT.
BTW, my CPA recommended that I elect the S-corp status on my C-corp last year. It all depends on your situation, I believe, whether you have other income, etc.
Personally, I don’t know jack about accounting so I’d listen to my CPA, but I’m sure JHyre and others will give you good advice on this matter.
I live in NJ. Formed a C-Corp in April 2000 as a part time business(for now). It will be used for rentals and rehabs. Havent done any deals/business this year, so I have no income(I do have some deductions…seminars, lots of books, etc.). I plan on getting a rental within 3 months to help build some income for my corp. My accountant recommended I change it to an S-corp for tax filing in 2001. I am aware of the"double taxation" of a C-corp and realized this when I formed it. However, for the long term I believe this is a better choice than a C corp. Suggestions? Comments? Please let me know?
SPD