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Running Payroll one time for c-corp?
I have c-corp incorporated in jan2009 (TEXAS state) and started generating revenue since may 2009. I did not run any payroll so far and I am the only employee. as its end of the year now what are my options? can I run one time payroll for all the money. Is it possible to convert to s-corp now? are there any benefits?
one CPA told me I would be paying hefty taxes as i did not run payroll being on a c-corp. he adviced me to run one-time payroll of all the balance in the business account(as much as possible) before end of the year
Yes I got bad advise. very bad one. I should have called a CPA first.
How do i run payroll? Will ADP or Paychex or any other payroll companies do it?
- Anonymous1 decade agoFavorite Answer
You cannot change from a C-Corp to an S-Corp without a lot of hassle and you will still need to run payroll as a C-Corp through the current date, in other words over 11 months. So you may as well do it for the whole year.
You need to put your self on the payroll and backtrack to show all of your earnings for the year. The corporation will have to pay FICA, Medicare and handle withholding of income tax and give you a W-2, plus file the W-3 with the Social Security Administration.
Why did you form a C-Corp? if someone suggested it you got very bad advice. I would disband the corporation entirely on 12/31/09 and form an S-Corp on 1/1/10, if that is possible. If not possible, look into how to convert it to an S-Corp on 1/1/10.
- Anonymous5 years ago
Good luck! :-)