I didn’t write to you yesterday because I hyperventilated most of the day! Guess what? If you are a corporation you must file quarterly income taxes. Thats 4 times a year! And of course you must file the annual tax return on April 15th. That makes 5 times for your corporation only. You still have to file your personal income tax on April 15th as well. That makes 6 filings of income tax per year! Hey, I don’t know about you all, but i am an accountant and filing my annual tax return is a breeze, but that’s once a year. It usually takes me the better part of 3 days to complete. First I have to gather up all my deductible receipts, heaven only knows where they are, (well I am really very organized, they are all in a file, but the file is not necessarily organized), so I have to organize the file, organize the w2s, use the “IRS Charitable Donations list to figure out what I can claim as a deduction for my donations to charities, download the files, and upload the expenses. Anyway it’s about a 3 day job for an organized person.

I freeked out when I realized i would have to go through this a total of 6 times a year. Oh my gosh, that’s 18 days of my time a year.

Ok, I need an accountant (even if I am one), because I don’t want to do it! That’s what I’ve done for The Man (Johnny Cash expression) all my life. i am looking for something new and relaxing, challenging, fun, I am not sure what, but different that makes money).

OK, so today I am looking for a bargain on GOOD, no EXCELLENT accountants.  I’ll let your all know what if find.

August 14, 2008

Today I learned about Corporate Tax Laws and accounting practices that need to be in place if you plan to make money with your Work-from-Home Internet business.

Delaware is no longer the corporate tax haven. About 8 years ago they changed tax laws that eliminate their tax haven status. The new tax haven states are Wyoming and Nevada. Below is a comparison of the tax laws in Texas, where I live, Wyoming and Nevada.

TEXAS - Texas is know as having Traditional tax laws. Their Privacy Policy for corporations is Public. When you register for a corporation it is published in the Court House. Tow different tax laws are applied to corporations in Texas. The Franchise Tax and the Excise Tax. The Franchise tax is a flat 5.5% of all money your corporation generates. The Excise Tax is a dollar amount based on the amount of money your corporation makes. Both of these taxes are paid annually to the state of Texas. Filling Fee paid annually to the Secretary of State, the Department of Revenue, State Business licensing Division, The City or County Business Licensing Division, and for your State Tax ID. A rough estimate of these combined fees is about $1025 per year. Could get expensive it seems.

Wyoming - Wyoming is also know as a Traditional Tax law state. Their Privacy Policies are Non-Disclosure. They have no flate percentage rate or Excise Tax and their Franchise Tax is $50 per year They have what is called Front Loading Filing Fees. This is a one time fee of $1480 for each corporation you own.

Nevada - Nevada is Not a Traditional Tax Law state This means you can create subsidiaries beneath your main corporation, protecting each corporation from a law suit levied against one of the other. Privacy Policy is Non-Disclosure. No Franchise tax; no Excise Tax. The Filling Fees are Front Loaded and a one time fee of $2865.

Because website marketers will probably have more than one website the benefits of the add on subsidiaries has unlimited potential. Of course we never expect to be sued, but who know what expense or damage an unsatisfied customer may cause.

This is well worth further investigation and research. Stay tuned for more information as I learn more.