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Tax Planning/Taxes and s corporation


Hello expert,

I have been working as an independent contractor for a year, I would like to open a S corporation now. Can I put me old expenses in my new S corporation since I have been working by myself for this company since January? is that legal? I make around 1700 a month with this job. It is December, It is too late to do this?

Thank you.

If you are "only" making about $1700 a month why not just be the sole proprietor of your business? You don't need to be a chapter S unless you have shareholders. All of your "corporate" income must be claimed and taxes paid by you anyway - as long as you are the only person in the corp. If others are in the corp., like your wife - she would have to claim her income from the corp. If you do decide to become an S corp you can do it on line for very little or even for free.

As for your expenses, you can claim them whether you become an S corp or not. Either way any business expense will be claimed on your personal income tax return. Get the TurboTax edition (or similar) for small businesses so you can claim all your expenses.

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Richard S


My expertise is in collecting past due taxes and tax returns. While at the IRS I worked on wage and bank levies, liens, Offer in Compromise, late filing and payment agreements every day. I spoke with over 20,000 people concerning their issues while I worked there (just retired).


Ten years working for the the IRS in Collections and tax return review. Worked with over 20,000 people on their IRS issues. Explained their options and usually worked out a solution while they were on the phone.

Masters Degree from Iowa State in Ames.

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