Accounting & Bookkeeping & Small Business Forum

I just incorporated (single person s corp) a new business in mid September and part of my registered agent's service is to file Form 2553 for election as an S Corp. They also filed SS-4 which is the application for the EIN. First thing that annoyed me is that they used my home address on these applications (should I be worried about this?) Granted it is a home based business, but am I allowed to use a Postnet store address if it says "do not enter a P.O. Box)? A Postnet store address is a street address, not a P.O. Box.

Next, on the EIN itself it has my company name, but there is no , Inc. next to it, why is this?

On the EIN, it says, "Based on the information we received from you or your representative, you must file the following form(s) by the dates shown.
Form 1120 12/15/2009
Why does it say Form 1120? Shouldn't it say 1120-S for S Corp?

Is EFTPS mandatory? Can I submit tax payments via a check instead?

Fill out form 8822 to correct name and address.
Use post net address as new address.
S election is apart and separate from application for Federal ID #.
Federal ID #'s can be applied for online and are assigned by computer. If you indicated 'corporation' on the application, IRS assumes C corporation.
Form 2553 is used to apply for S election and it will be reviewed by an IRS employee. If it is incorrect or incomplete, you will be contacted by mail. Then when application is accepted (or rejected), you will be notified by mail and you need to keep that letter in your corporate records. This will take 2 or 3 months but in the mean time, you have FEI# in hand to conduct business.
The notification to file form 1120 is not binding and correct form and year-end date will be established by filing your initial tax return.
If you accumulate a 941 tax liability of less than $2500 for the quarter, you can send in payment with the return. I strongly recommend making monthly tax deposits and I urge you to use EFTPS system.

So you're sure that I can use the Postnet address on anything for the IRS?
S Election was supposedly filed by the registered agent too so I will check with them on that..

I can find no prohibition from using Postnet or Pakmail as physical address for IRS correspondence. I have clients who use them and there have been no problems.
RE: S Election. Your agent cannot file it on your behalf. You have to sign it as a company officer and then sign stockholder's consent in another place. Do you remember signing the form 2553? Why don't you ask for a copy of the election just for peace of mind.

We've decided that the corporation's first day of business will be January 1 since we're getting so close to the end of the year.
Will I have to file anything with the IRS on 12/15 as it states on the EIN letter?

No. Nothing is due by 12/15/2009. You will need to file a return that shows income and expenses from date of incorporation to 12/31/09 and a balance sheet as of 12/31/09. Of course if these are zeros, that's all you have to enter but that is unlikely since you have paid for the incorporation as a minimum. If you don't file a return, you will start receiving letters from IRS demanding a return and you will be subject to penalties for late filing - I believe the penalties are $90 per month per shareholder for an S corporation. Also, some states require that the occupation tax (net worth tax as it is sometimes called) be paid a year in advance, so you might be subject to some penalties in this regard. Also, you can elect to write off some organization expenses that will generate a loss but only if done in the year of incorporation. There might also be some other important elections you will miss by following your strategy. Suggest you invest a dime and start off on the right foot.

I don't even have the business checking account open yet. I paid for the incorporation services with a personal credit card for the time being, so how do I show income and expenses and a balance sheet when nothing has really even taken place? Yes, I incorporated in September with the state, and my EIN was granted a month later. I don't have Quickbooks accounting set up yet either.

Your corporate balance sheet presently reads
Debit Organization Expense $ XXX.XX
Credit Common Stock $XXX.XX
By filing a corporate tax return for 2009, you can write-off the organization expenses and the loss will 'flow through' to your personal return meaning that you will take it as a loss on your personal income 2009 return. The option is to do as you described and write it off over 180 months. The tax authorities have no interest in whether you have opened a bank account or set up Quickbooks. I strongly recommend that you re-read my previous post. Perhaps some other readers might want to jump in.

So the $600 something I put on my personal credit card for the Incorporation, and all the things that came with it, will be deductable as a business loss on my 2009 1040 return is what you're saying, correct? Where did the 180 months come from? Seems like a long time to write off $600 over? Is there a reliable online source for what is required of me (that isn't altogether confusing) so I don't have to rely on bugging you? After the incorporation, which was easy enough, I don't have a guide or step by step to follow so I know I'm doing everything correctly. By the way, thanks for taking your time to help me out with this stuff.

I found this on the IRS website,, is it worthwhile?
http://www.irs.gov/businesses/small/art ... 74,00.html
It's a series of videos for paying taxes and "your new business"
Seems like a good start?

The organization costs and any other costs you incur can all be deducted in 2009. But you will have to pick up any revenue. I am assuming, of course, that you are not in development stage and are 'open for business' and are actively seeking customers.