AboutRichard Fritzler Expertise Specializing in Business and Corporate taxation. Comparing the advantages and requirements of different business entities, such as Sub-S Corporations, LLC`s, Partnerships (Both Limited and General), Doing Business as a Sole Proprietor, or Using a C-Corporation. Issues regarding K-1 distributions, 1040, schedule C, 1120, 1120s. Are you considering domiciling a Corporation in a low tax state? I can review the benefits and misinformation that exists.
Experience I have been in the business of assisting business owners in reducing their taxes and liability since 1986. The company is Owelesstax, incorporated, at www.owelesstax.com
Organizations National Small Business Owners Association. Publications Contributing author to "The Corporate Standard Newsletter".
Publications Contributing author to "The Corporate Standard Newsletter".
Your prior explanation of PSC taxation was very useful, but I have a follow-up question. With regard to the specific stipulations of a Personal Service Corp, does it matter whether the services are performed for a corporation or an individual? Is the spirit of the term "Personal" meant to imply that the services are performed *by* a person, or *for* a person, as opposed to for a corporate entity? Or is this irrelevant? It seems to me that, for example, business consulting services performed for a corporate entity might be held in a different light than, say, home decorating services performed for an individual, but perhaps this is just wishful thinking. I am a business consultant who works solely with corporate entities, and I am trying to determine if I might satisfy all the requirements but still _not_ be classified as a PSC due to the intent of the law.
Many thanks!!!
Alan
Answer Good try, but. . .
If I can take license with the explanation:
The term "Personal" would apply to the "Servicor" not the "Servicee"
Neither of these words probably exist in the English vernacular, but seem to most directly apply.
In other words, it is the entity that is Providing the service and not the entity receiving the service that is described by the word "Personal".
I think I will try googling those words now and in a few months.
