Will incorporating my new business protect it from my personal IRS problems?
Question:
Answer:
It depends. Generally, a legal entity will separate personal from business liabilities. The benefit of a legal entity for IRS purposes is that the IRS has to wait for money/property to be distributed from the entity before the IRS can get at the money/property. If you happen to live in a common law state (i.e., not a community property state) then you might be able to have distributions go to your wife. You will want to talk to a tax attorney about this.
Also, you will want to be careful to avoid the transferee liability rules -- which essentially say that if you contribute money/property to another taxpayer (including a corporation that you own) for less than full value, the IRS will be able to attach a lien and levy on assets equal to the amount gifted.
Here is a link to an article that I wrote on this topic:
http://www.mechanicsofmoney.com/taxes/as...
Best of luck,
Kreig Mitchell
http://www.irstaxtrouble.com/longmont-co...
Yes...because of the limited liabilities of Corp's.
Not really. The IRS can't come in and take the business assets if they put a lien on your personal property. But you own the stock of the company, so it is an asset you own. So instead of taking a copier or business vehicle, they just take the company stock from you and own the whole business.
No it won't. The business was started as a sole priorter at the start of the Tax issues and it is OPEN to search due to its the primary source of income.
Get a good tax preparer or specialized attorney. IT will be about $300 or so per person. WORTH EVERY PENNY & YOU CAN WRITE IT OFF AS A BUSINESS EXPENSE!
HOT DOG! Good stuff huh!
Incorporating may protect YOU from the business's tax problems. As long as YOU own the business, the IRS can seize the entire business if you owe them enough.
This video might help you it helped
alot of others
http://video.google.com/videoplay?docid=...
Yes. The fact that you already have a judgement against you won't effect your new business. Incorporating will protect you and your personal assets from creditors and lawsuits.
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