What is the name of your state? CA
I have a service business that caters to Architects, Designers and Construction Contactors here in CA. The service is energy calculations on building plans so they pass state code and the end user can get a building permit. Would we qualify as a Personal Service Corporation? and be taxed the 35% rate? We want to have the most deductions available and are considering a C Corp. I read that if I had my spouse as a 6% shareholder ( she does not work for our company) that we could avoid the Personal Service Corporation Classification. Is this true?
thank you in advance for your response.
I have a service business that caters to Architects, Designers and Construction Contactors here in CA. The service is energy calculations on building plans so they pass state code and the end user can get a building permit. Would we qualify as a Personal Service Corporation? and be taxed the 35% rate? We want to have the most deductions available and are considering a C Corp. I read that if I had my spouse as a 6% shareholder ( she does not work for our company) that we could avoid the Personal Service Corporation Classification. Is this true?
thank you in advance for your response.