Into the alien world of incorporation.
Oh yeah. This year we incorporated the business, taxing it as an S corporation. This means another learning curve, and ach, other things.
We didn't get our confirmation from the IRS until May, even though we declared we wanted to be taxed that way starting Jan 1, 2021. So we got held in limbo for about five months. We did continue to pay estimated taxes, and looking at it now we probably should have been paying payroll taxes just in case. But that didn't happen. So when it did come in (SURPRISE!) we had five months of payroll taxes to catch up, plus penalties and blah blah blah. I think September will be the first month where we fully catch up and can act like all's normal now.
One the state side, one little thing I had no idea about was the statewide transit tax. It's not much really, .001 percent of payroll per month, which for us is under $20. I just have to remember to include this amount when sending in estimated payroll taxes.
Quarterly reports I've been pretty good at, and since Oregon lets me do the entire process online (yay for Revenue Online!), it's fairly easy to keep up that way. Fed's I still have to fill out Form 941, but it's not as much of a pain in the rear as one might think, even with all those lines to fill in.
However I'm hiring a professional to do form 1120S, the end of the year corporate return. Hopefully nothing's too terribly out of line.
We didn't get our confirmation from the IRS until May, even though we declared we wanted to be taxed that way starting Jan 1, 2021. So we got held in limbo for about five months. We did continue to pay estimated taxes, and looking at it now we probably should have been paying payroll taxes just in case. But that didn't happen. So when it did come in (SURPRISE!) we had five months of payroll taxes to catch up, plus penalties and blah blah blah. I think September will be the first month where we fully catch up and can act like all's normal now.
One the state side, one little thing I had no idea about was the statewide transit tax. It's not much really, .001 percent of payroll per month, which for us is under $20. I just have to remember to include this amount when sending in estimated payroll taxes.
Quarterly reports I've been pretty good at, and since Oregon lets me do the entire process online (yay for Revenue Online!), it's fairly easy to keep up that way. Fed's I still have to fill out Form 941, but it's not as much of a pain in the rear as one might think, even with all those lines to fill in.
However I'm hiring a professional to do form 1120S, the end of the year corporate return. Hopefully nothing's too terribly out of line.