Tax Guru – Ker$tetter Letter

The Payroll Tax Trap. Will Bush’s legacy be a huge new burden on the most productive Americans? – For anyone who has been putting off the use of corporations and other techniques to save on payroll taxes, you only have yourself to blame when those taxes eat up an even larger share of your income.

Q:

Subject: CA Corporation filing fees

 

Hi Kerry,

 

Could you please elaborate a little on your statement below since I am reading on the CA. Secretary of State website that the CA filing fee is $100.

 

What I have found is that it is much easier to just set up a brand new virgin corporation, especially in states like Arkansas and Missouri where it only costs $50 in filing fees.  In states like California, where the filing fees are in the thousands, this strategy is a bit more expensive and needs to be evaluated a little more closely.

 

Thanks

A:

It’s been a few years since I’ve been involved in setting up a new Calif corp; but it used to be required that new corps submit non-refundable payments for their first and last minimum taxes along with the paperwork filing fee.  That was an additional $1,600 up front cost, which other states that don’t have minimum taxes don’t require.

A tax pro who is more current on the costs of setting up a new Calif corp can give you more specifics for the actual cost nowadays.

I hope this helps.

Kerry Kerstetter

 

State politicians are creating a de facto national sales tax. – No surprise here. We all knew that sales taxes on internet purchases were inevitable.

When making those last minute donations, make sure you do it properly.

Don’t Take a Bath By Ignoring the ‘Wash Sale’ Rule on Stock Losses – From Gail Buckner

Numerous Changes Show Up on the New Form 1040—and More Are Coming – From the latest Intuit ProConnection Newsletter

IRS Begins Implementing Extenders Legislation; Works to Help Taxpayers During Filing Season