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Income to a brand new corporation

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D_Matrix

Junior Member
I started a C corporation in December 2005 as the entity for my services business. I had provided services during 2005 and received payment for those services in December after the C corp was formed. Can I treat that income received in December as income to the C corp even though it was payment for services I performed prior to the existence of the corporation? Thanks.
 


LdiJ

Senior Member
D_Matrix said:
I started a C corporation in December 2005 as the entity for my services business. I had provided services during 2005 and received payment for those services in December after the C corp was formed. Can I treat that income received in December as income to the C corp even though it was payment for services I performed prior to the existence of the corporation? Thanks.
Do yourself a favor and get a consult with a CPA. It may not be to your best advantage to be a C corporation, an S corporation may be better for you.
 

D_Matrix

Junior Member
I did consult a CPA and we decided the C corp is the right way to go. Can you help with my question about the payment coming in December when the corp exsits but for services both during and before my corp existed? Thanks.
 

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