How to Start and Run Your Own Corporation : S-Corporations for Small Business Owners

by Hupalo, Peter I.

• ISBN13: 9780967162447
• ISBN10: 0967162440
• Format: Paperback
• Copyright: 2003-03-01
• Publisher: Lightning Source Inc

Table of Contents

Introduction	9	(2)
A Note About Tax Rates And Burnt Minds	10	(1)
Chapter 1. Choose Your Business Structure (Wisely!)	11	(12)
Sole Proprietorships	12	(2)
Partnerships	14	(1)
Limited Liability Company	15	(1)
Corporations	16	(2)
S-Corporations	18	(3)
Do I Need More Than One Corporation?	21	(1)
Tax Shelters	22	(1)
Chapter 2. A Step-By-Step Guide To Incorporating	23	(6)
Conclusion	28	(1)
Chapter 3. Choose A State	29	(6)
Reasons For Incorporating In Delaware	29	(1)
Reasons For Incorporating In Your Own State	30	(1)
Foreign And Domestic Corporations And The Concept Of "Doing Business"	30	(5)
Chapter 4. Basis	35	(14)
Basis In C-corporations	35	(2)
More About Basis And Section 1244 Stock	37	(2)
Net Operating Losses And Tax Loss Carryforwards	39	(2)
Basis Per Share	41	(1)
Basis In S-Corporations	42	(3)
S-Corporation Distributions And Basis	45	(1)
Basis And Wages	46	(1)
S-Corporation Basis Worksheets	47	(1)
Loan Restoration	47	(2)
Chapter 5. Shares-Authorized, Issued, Outstanding	49	(21)
Preferred Stock	49	(1)
Classes Of Stock	50	(1)
Issuing Shares And Percentage Ownership	50	(2)
Shareholder Agreements, Buy-Back Agreements, And Treasury Stock	52	(8)
Preemptive Rights And Successive Rounds of Financing	60	(4)
Par Value And No Par Value Stock	64	(1)
Paid-In Capital And Retained Earnings	65	(5)
Chapter 6. Debt And Equity Financing	70	(13)
Loans	70	(1)
Equity	71	(1)
Loans From Shareholders To The Corporation	71	(4)
Accrual Accounting And Shareholder Loans	75	(2)
Shareholder Leasing To The Corporation	77	(2)
How About Rent Office Space In Your Home To Your Corporation?	79	(4)
Chapter 7. Angel Investors	83	(4)
Private Placements And SCOR	83	(2)
Rule 506	85	(1)
Intrastate	85	(1)
Approaching Angel Investors	85	(1)
SBA Loan Guaranty Programs	86	(1)
Chapter 8. Employee Stock Options (C-Corporations)	87	(4)
The Angel Investor/Manager Employee	90	(1)
Chapter 9. Directors	91	(14)
Concept Of Quorum	95	(4)
Minutes Of The Meeting	99	(1)
A Board Of One And Consent Resolutions	99	(1)
Directors And Officers Insurance	100	(1)
Cumulative Voting	101	(3)
Close Corporations vs Closely-Held Corporations	104	(1)
Chapter 10. Officers	105	(7)
The President	106	(1)
Apparent Authority	107	(2)
Derivative Shareholder Lawsuits	109	(1)
Identifying Your Corporate Role	110	(1)
Treasurer, Secretary, And Vice President	111	(1)
Chapter 11. A Resolution For Everything	112	(5)
Accountable Plan To Reimburse Employee-Paid Expenses	113	(4)
Chapter 12. Workers' Compensation
Unemployment Insurance	117	(2)
Self-Insurance	119	(1)
Bonuses	119	(2)
Chapter 13. Employees And Employee Benefits	121	(4)
Chapter 14. Intelligent Reinvestment Of Pretax Earnings	125	(6)
Pretax vs. After-Tax Purchases And Tax Savings	125	(6)
Chapter 15. Tax Strategies	131	(22)
The Disadvantages/Advantages Of A C-Corporation	136	(4)
S-Corporation	140	(1)
Income Splitting	141	(1)
Accumulated Earnings	142	(1)
Growing A Business	143	(1)
Company Valuation: Buying And Selling A Company	144	(5)
Phantom Income	149	(1)
Personal Holding Company	150	(1)
To Invest In Other Stocks And Bonds Within Or Outside The Business	150	(3)
Chapter 16. Retirement Plans	153	(8)
Qualified Plans	153	(1)
S-Corporation Issues And The SIMPLE-IRA	154	(2)
SEP-IRA	156	(1)
The One-Person 401(k)	157	(1)
Is Your Retirement Plan Safe From Judgments And Bankruptcy7	158	(2)
Profit-Sharing Plans And Other Options	160	(1)
The Power Of Tax-Deferred Compounding	160	(1)
Chapter 17. Introducing Schedule M-2 And The AAA	161	(7)
AAA: The Mother Of All "Basis" Accounts	161	(2)
Other Adjustments Account	163	(1)
Shareholder's Undistributed Taxable Income Previously Taxed	163	(1)
Earnings And Profits (E&P)	164	(1)
The Order Of Distributions From The Accounts	165	(2)
Dividends And Distributions	167	(1)
Chapter 18. Sample 11205 Return: Joe's Sex Toys Emporium	168	(31)
Schedule A	171	(1)
Meanwhile On Page 1	172	(2)
Moving On To Page 2 Of The 1120S	174	(2)
Schedule K	176	(1)
Page 4 Of The 1120S	177	(2)
Schedule M-1	179	(1)
** Non-Deductible Expenses **	179	(2)
Schedule M-2	181	(1)
Form K-1	182	(1)
** Multiple Shareholders **	183	(2)
Earnings Per Share Per Day And Ownership Changes	185	(3)
Analysis	188	(1)
Conclusion	189	(1)
Forms: Sample 1120S Return: Joe's Sex Toys Emporium, K-1	190	(9)
Chapter 19. The Future	199	(2)
Select Resources	201	(4)
Books	201	(2)
Websites	203	(2)
Index	205