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Message
re: So a C corporation is taxed twice on profit?
Posted on 11/10/14 at 6:18 pm to drexyl
Posted on 11/10/14 at 6:18 pm to drexyl
quote:
you have a corporate tax filing due in November? What's your year end?
November. We haven't had any cash flow or income yet, but still have to do a quarterly filing, and the investors need a copy of it before we move forward. I have that, and have to have our meeting of the board of directors and record the minutes and all that shite for the Sec. of State
0
Posted on 11/10/14 at 6:26 pm to I B Freeman
quote:
Wait to you experience a big profit and have to have cash to pay taxes but all your profit is in equipment or receivables or something and you have to raise cash to pay taxes.
One of the biggest thing republicans and Obama could do now to help the economy is to allow domestic corporations to write their capital expenditures off like a cash basis farmer does. Over the long run it would be tax neutral but it would help business keep cash in their business while they are growing and investing.
All of equipment is being purchased up front with cash. The business is a catfish farm, btw. We'll have cash on hand for taxes and still enjoy the benefits that farmers get in regards to tax breaks. All sales will come in the 4th quarter so our net taxes will be paid on a cash basis and all of my customers pay in advance anyways rather than on credit because they want the fish in the early spring but pay for them in late fall for tax purposes
It may sound odd to have a farm set up in this way, but it's been common in this industry due to it's high investment/high return compared to row crops. There was one operation, aqua pro farms, who actually went public and had over 15k acres and over 50 million in assets.
Posted on 11/10/14 at 6:27 pm to BlackHelicopterPilot
quote:
White people's problems
Tell me that is sarcasm.
Posted on 11/10/14 at 6:33 pm to I B Freeman
quote:
Tell me that is sarcasm.
Of course....yeeesh
Posted on 11/10/14 at 6:34 pm to deltaland
quote:
The business is a catfish farm, btw. We'll have cash on hand for taxes and still enjoy the benefits that farmers get in regards to tax break
You have a very profitable business if in the first year your are able to write off all your equipment in year one on a cash basis and still have income tax obligations and money to operate your business and replace your inventory and pay your taxes.
If you invested all of your $2 million in equipment and are able to pay taxes on that on a cash basis then your profits were over $2 million significantly.
Posted on 11/10/14 at 6:40 pm to deltaland
quote:C Corp is the preferred form if you have outside investors like venture capitalists. I've had several LLC's elect C corp treatment to attract investors. Got to pay to play.
We were told by the investing party to change it to a C corp.
Posted on 11/10/14 at 6:44 pm to deltaland
quote:
I was told when I asked why C corp it was easier to grow if we were a C corp and kept open the option to go public
quote:
catfish farm
Posted on 11/10/14 at 6:45 pm to I B Freeman
600-700k invested in equipment.
800k-1 million in overhead costs year 1 and on.
300k in "emergency funds" for unexpected expenses.
2.4 million in gross sales expected.
The accounting once we are operating will be handled by a very good firm who does many large farmers here locally and knows the ins and outs of every possible break/advantage.
800k-1 million in overhead costs year 1 and on.
300k in "emergency funds" for unexpected expenses.
2.4 million in gross sales expected.
The accounting once we are operating will be handled by a very good firm who does many large farmers here locally and knows the ins and outs of every possible break/advantage.
Posted on 11/10/14 at 6:52 pm to drexyl
Catfish farms have gone public before. Aquapro did it in 1995.
Where we are wanting to have that option is if we expand acreage and decide to build a processing plant in the future. Something like that would generate over 30 million/year profit
There is more details that I prefer not to discuss, but it's not planning on being your "run of the mill" family farm. We have innovative ideas and also are designing new technology that will revolutionize the industry. But these things go in stages..getting the initial farm is the first stage, and we have to be profitable to move to stage 2 and get additional investment.
Where we are wanting to have that option is if we expand acreage and decide to build a processing plant in the future. Something like that would generate over 30 million/year profit
There is more details that I prefer not to discuss, but it's not planning on being your "run of the mill" family farm. We have innovative ideas and also are designing new technology that will revolutionize the industry. But these things go in stages..getting the initial farm is the first stage, and we have to be profitable to move to stage 2 and get additional investment.
This post was edited on 11/10/14 at 6:59 pm
Posted on 11/10/14 at 6:56 pm to deltaland
quote:One bit of advice when dealing with C-Corp. Spend a few hundred dollars and get a personal lawyer experienced in corporate law to review the documents and make sure that you are covered for liabilities personally. You are more exposed than with an LLC and you want to know what and what not you are liable for early on as things may come up quickly once the business starts. Also the rules concerning the stockholders / board of trustees / operations is very important.
deltaland
Posted on 11/10/14 at 6:58 pm to deltaland
quote:
I never knew this. I just set up a C corp and am about to receive a 2mil investment to get it going. Needed to do a tax filing...I didn't realize with a C corp they tax the profit of the corporation, and then tax the dividends distributed to shareholders.
After reading, you better ditch your financial guy.
This post was edited on 11/10/14 at 7:06 pm
Posted on 11/10/14 at 7:01 pm to fontell
quote:
How did you get a 2mill investment and not know this?
Posted on 11/10/14 at 7:04 pm to mmcgrath
quote:
Spend a few hundred dollars and get a personal lawyer experienced in corporate law to review the documents and make sure that you are covered for liabilities personally. You are more exposed than with an LLC and you want to know what and what not you are liable for early on as things may come up quickly once the business starts. Also the rules concerning the stockholders / board of trustees / operations is very important.
Already covered. My business partner handled all of that. He has a corporate lawyer and he also is a paralegal himself for corporate/business law.
We are on the right track and he has it handled...it's just not my area of expertise so I let him handle it and we work well enough together that I can trust him to do it the right way. Everything has been smooth sailing thus far
I just never knew about how they taxed a C corp, since it was a recent change and it was requested we change to it.
Trust me, we have the attorneys and accountants to make sure it's being done properly. I'm not stupid, just not experienced in corporate tax structure
Posted on 11/10/14 at 7:10 pm to deltaland
Yeah, as long as you're covered, you're covered. And when you're taking $2M of someone else's money, they obviously get to dictate some shite.
Good luck, man!
Good luck, man!
Posted on 11/10/14 at 7:28 pm to deltaland
I had deduced by the vague info in the first two pages that you were setting up a pot growing operation... probably in St Tammany or Washington Parish.
Close enough.
quote:
Catfish farms
Close enough.
Posted on 11/10/14 at 8:15 pm to deltaland
quote:
catfish farm
Amazing that I know of several really smart, well-connected business folks have tried this over the past decade and lost tons of money and got out with their tails tucked between their legs.
I guess you and your business-savvy partner will be different.
If it seems too good to be true, guess what? It is.
Good luck, you absolutely will need it.
Posted on 11/10/14 at 8:52 pm to deltaland
Yep.. corporations don't pay taxes... 
The socialists beat this drum constantly and there is not a shred of truth to it.
The socialists beat this drum constantly and there is not a shred of truth to it. 
Posted on 11/10/14 at 8:56 pm to deltaland
In
What's projected sales?
What's projected sales?
Posted on 11/10/14 at 9:23 pm to ShermanTxTiger
quote:
corporations don't pay taxes... The socialists beat this drum constantly and there is not a shred of truth to it.
There's a difference between multinational corporations that employ K Street's finest and Joe Farmer from Mississippi.
Good luck, OP.
Posted on 11/10/14 at 9:32 pm to deltaland
quote:
Already covered. My business partner handled all of that. He has a corporate lawyer and he also is a paralegal himself for corporate/business law.
quote:
Spend a few hundred dollars and get a personal lawyer
I think you missed the point. A corporate lawyer is going to represent the corporation. If you are a meaningful partner in this then you should have interviewed a couple yourself. If your partner handpicked one you can bet they are going to represent your partner more than yourself when push comes to shove.
i was suggesting a personal lawyer to look over the documents to represent your interests and to make sue you have enough liability coverage so you don't lose your house or anything else.
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