What is the name of your state (only U.S. law)?
What is the name of your state (only U.S. law)?
Massachusetts
I have been operating an s-corp, which I opened to operate a franchise. It is known as XYZ, Inc, DBA Franchisor's name.
I have been released legally from the franchise and am operating a similar type of business (with their legal blessing) under the terms of the release agreement.
I'm wondering if it makes sense to close this s-corp and open another one for my new business. He reasons are:
While I have a good accountant and my tax returns are files properly, my bookkeeping was atrocious in the early days and I'd like a clean slate in case of an audit. here was no real income to speak of as the franchise was one of those horror stories. I now keep exemplary records.
While not expecting any trouble, I don't want any exposure to law suits over any past involvement with other businesses with whom I had a variety of relationships, from reseller agreements to handshake deals. I honored all such agreements and don't foresee any problems but the economy seems to bring out the worst in some. I've heard stories of people getting sued over things that seem vindictive in an attempt to get some money.
It appears that one can get sued over anything and there is always a cost of defense regardless of the credibility of the action.
Since there doesn't appear to be public defender for business owners (is there?) I want to rest assured my new start is a clean one.
Does closing the first s-corp protect the business interests of the new one?
I’m trying to weigh the costs with the peace of mind. In terms of the costs I imagine I will have to file a final tax return so there’s that. I’m unaware of any other costs. There is some accumulated deprecation of the franchise agreement that will have to be taken care of.
IF I keep the same s-corp is there a lot involved in getting a DBA name change?
What is the name of your state (only U.S. law)?
Massachusetts
I have been operating an s-corp, which I opened to operate a franchise. It is known as XYZ, Inc, DBA Franchisor's name.
I have been released legally from the franchise and am operating a similar type of business (with their legal blessing) under the terms of the release agreement.
I'm wondering if it makes sense to close this s-corp and open another one for my new business. He reasons are:
While I have a good accountant and my tax returns are files properly, my bookkeeping was atrocious in the early days and I'd like a clean slate in case of an audit. here was no real income to speak of as the franchise was one of those horror stories. I now keep exemplary records.
While not expecting any trouble, I don't want any exposure to law suits over any past involvement with other businesses with whom I had a variety of relationships, from reseller agreements to handshake deals. I honored all such agreements and don't foresee any problems but the economy seems to bring out the worst in some. I've heard stories of people getting sued over things that seem vindictive in an attempt to get some money.
It appears that one can get sued over anything and there is always a cost of defense regardless of the credibility of the action.
Since there doesn't appear to be public defender for business owners (is there?) I want to rest assured my new start is a clean one.
Does closing the first s-corp protect the business interests of the new one?
I’m trying to weigh the costs with the peace of mind. In terms of the costs I imagine I will have to file a final tax return so there’s that. I’m unaware of any other costs. There is some accumulated deprecation of the franchise agreement that will have to be taken care of.
IF I keep the same s-corp is there a lot involved in getting a DBA name change?