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jagsmunchkin · Jan 29, 2008, 08:14 PM

I started a Florida Corporation in Nov. 2007. I decided not to go through with the job and my Corporation is sitting there. There was no income, just my loss of $70 to pay to start it. Is there anything that I will be receiving from the state? Do I have to file a return? Or if there is something I have to file, please tell me what it is. I have no idea. I do my own taxes personally for my husband and I so I am competent in taxes, but I don't know the rules for corporations. Thank you in advance for your replies. - Melissa

Barry D · Jan 29, 2008, 09:43 PM

Originally Posted by jagsmunchkin

I started a Florida Corporation in Nov. 2007. I decided not to go through with the job and my Corporation is sitting there. There was no income, just my loss of $70 to pay to start it. Is there anything that I will be receiving from the state? Do I have to file a return? Or if there is something I have to file, please tell me what it is. I have no idea. I do my own taxes personally for my husband and I so I am competent in taxes, but I don't know the rules for corporations. Thank you in advance for your replies. - Melissa

First off You should file the Federal 1120 ( I am assuming this is not a sub s corp) if for no other reason then having a net operating loss carry fwd for furture years if you plan on staying in business. Second, you my have a "Franchise Tax" due on the state level. A franchise tax is a right to do business tax. This is EVEN if you have Zero income. In California there is a Franchise Tax of $850 for the taxpayers first year of biz. This is even if there is no income at all. I believe the state of FL is the same way. Back to the Federal side of this if you do not stay in biz you can sell the Corp Shell on places like craigslist classifieds: jobs, housing, personals, for sale, services, community, events, forums I had a tax client do just that. Hope this is of some help

Barry D · Jan 29, 2008, 09:43 PM

Originally Posted by jagsmunchkin

I started a Florida Corporation in Nov. 2007. I decided not to go through with the job and my Corporation is sitting there. There was no income, just my loss of $70 to pay to start it. Is there anything that I will be receiving from the state? Do I have to file a return? Or if there is something I have to file, please tell me what it is. I have no idea. I do my own taxes personally for my husband and I so I am competent in taxes, but I don't know the rules for corporations. Thank you in advance for your replies. - Melissa

First off You should file the Federal 1120 ( I am assuming this is not a sub s corp) if for no other reason then having a net operating loss carry fwd for furture years if you plan on staying in business. Second, you my have a "Franchise Tax" due on the state level. A franchise tax is a right to do business tax. This is EVEN if you have Zero income. In California there is a Franchise Tax of $850 for the taxpayers first year of biz. This is even if there is no income at all. I believe the state of FL is the same way. Back to the Federal side of this if you do not stay in biz you can sell the Corp Shell on places like craigslist classifieds: jobs, housing, personals, for sale, services, community, events, forums I had a tax client do just that. Hope this is of some help

jagsmunchkin · Jan 30, 2008, 06:47 AM

I don't believe my business is a sub s Corp. I don't need to sell it because my husband and I are both starting the jobs this year with the corp. so now I need it. And I am going to hire an accountact next year for the taxes. But I can't afford a $300 bill for an account to fill zeros across a page that I can do myself, at least this year. Where do I go/how can I find out if Florida has that franchise tax? Does that mean I have to pay $850 as a flat rate tax for that? Yeah that I don't have I am having a baby in less that 2 months! I'd appreciate a little more info if you wouldn't mind. Thanks much.

AtlantaTaxExpert · Jan 30, 2008, 03:25 PM

Get the accountant, even for a "zero" tax return.

A corporate return is a completely different animal than a normal personal tax return and is NOT FOR AMATEURS.

okinawarules · Nov 8, 2010, 06:14 AM

I read a book that really help answer a ton of these questions. Rich Dad's Own Your Own Corporation by Garrett Sutton. It is an amazing overview of the different types of corporations and how they work. This book further expounds on the post above. Get an accountant that knows corporate tax laws. If you do this wrong you can "pierce the corporate vial" which basically means that you are personally liable for things that happen in the company. -JC Ryan