S-Corp Question Here - Need some input please

[ccoughlin]

Hi,

I manage my husband's IT consulting one-person S-Corp. Soon I will be starting up mine again as well, to get back into consulting, after being home with little ones for several years. I plan on starting to search for jobs in the Fall season. Most consulting companies require an S-Corp set-up. If I don't find work in 2013, but have the S-Corp "up-and-running" in the eyes of Federal & State taxes, can I claim $0 salary and file a $0 S-Corp return? Can this be done? I think I read that I need to have the status of this year turned-in/decided by March 15th, otherwise you cannot claim to be a S-Corp for 2013, hence my urgency with this question.

Thanks for input ~ C. Coughlin, MBA

[Business Attorney]

If the corporation has no revenues and no expense, you would still file a tax return showing exactly that. If the corporation no revenues, there is nothing wrong with paying $0 salary for the year. You don't have to pay a salary and create a loss for the S corp.

[jamesray50]

If you were going to file an income tax as an S-Corp for 2012, then you would have to request that on Form 2553 before 3/15/13. So, to answer your question, no you do not have to file the return by 3/15/2013 because you didn't have a business in 2013.

But, once you form your LLC, you have two months and fifteen days to request S-Corp tax status.

Hope this helps and good luck with your business.