Thinking of turning your sole proprietorship into a corporation?
This could be a great idea — but be careful! You see, when you incorporate your business, you have to decide which assets you want to transfer to your new corporation and which you want to keep in your own name.
For some assets, you get better tax benefits and better liability protection when you don’t transfer them to your corporation.
Want to find out more? Lots of important, money-saving information is waiting for you when you read my new article titled Tax Tips: Incorporating Your Proprietorship.
Three ways our fact-filled article can help you:
- You’ll learn to how to transfer assets to your corporation, tax free! In order to make the transfer tax free, you have to be in “control” of your corporation. “Control” has a specific meaning to the IRS which you’ll need to understand. We’ll explain everything when you read the full article.
- We’ll tell you what corporate status really means. You must always remember that a corporation is a separate entity from you. Which means your corporation can’t use your personal assets (and you cannot use the assets of the corporation) without unpleasant consequences. We’ll show you how to stay out of hot water when you read the full article.
- You’ll learn how to keep the IRS happy. If Uncle Sam thinks you are “commingling” your personal assets with those of your corporation, the IRS can reallocate your assets, income, and deductions in a manner it sees fit. Which can leave you in a lot of pain. We’ll show you how to avoid trouble with the IRS when you read the full article.