sole prop to corp transition

[jawnpiece]

Hello,

Looking for help/direction with small business finances. Just informed second cpa is 'getting out'. First accountant went missing, stopped returning calls etc.

Background: Started side business in aug 2013, ran as sole prop. personal bank account.
filled articles of inc in FL, and ein in nov 2013. Never did anything else with the corp ein; business name. never opened bank account, never did business under it, never elected as 's' corp.
filed 2013 taxes as sole prop.
Continued business in 2014 the same.

I would like to get an s corp set up and untwine the personal/business finances.

tried going the safe way with getting a professional involved but it seems like pulling teeth to get anyone to get things done. so questions:
1. Is it too late to use the filed corp name because of late filling penalties? Start from scratch?

business is not complicated, cant see why this just cant be done myself. quickbooks, 1 salary (me) and not trying to buy a new range rover as a business expense.

Thanks for the time

[Freelancier]

cant see why this just cant be done myself
Because you haven't successfully done this yourself so far. Sometimes the obvious has to be stated so you can see it.

It's not that hard to find a good reputable small business accountant. Just walk into another small business who has been around a while and ask their owner who they use. Most business owners are too busy running their own business to do their own taxes (or do them properly, since the rules change yearly and those rule changes can hurt or help you if you're paying attention to them like a good accountant would).

[BizAdvisor]

So basically, you changed your business structure, but didn't commit to it. Not to worry. As far as the tax situation goes, under law, you didn't have to file taxes using your EIN because it technically didn't make any money yet. However, you did file your sole proprietor, which isn't a big deal because it's the same as your social.

Eventually, you're gonna have to open a business banking account, Keep books and records, and file taxes using your EIN.

[shrinkme]

Didn't see anybody say this so far... you own your current business, i.e. sole proprietor. You want your corporation to own the business. You need to sell your company to your corporation for your corporation to own it. You can sell for $1 if you like, it's up to you. Remember that you still have to fill out your schedule C for the year you sell it to claim your income from your sale. The purchase price would also be an expense for your corp.

I have done something similar and this strategy worked out ok.

[Freelancier]

You can sell for $1 if you like, it's up to youHas to be for fair market value for the asset sale to really look an asset sale between disinterested partners.