Which type of corporation?
I am proposing setting up a corporation, with me, my wife, and daughter. My wife and i have income (contract) but no deductions. My daughter has deductions, but no income. Currently, my wife and I get murdered on schedule C, as we get 1099's. If the three of us incorporate, and we give the companies we work for our tax ID numbers, then we will greatly reduce our tax liabiliy, especially seeing as my wife and I have itemized deductions we are not allowed to use to offset schedule C income.
My queston, though, is if I incorporate, say, tomorrow, as long as my "employer" lists all of my 2009 income under my new corporate tax ID number, will I be Ok to put it all into the corporation.
Am I correct here ? Do you see any problems with this plan?
Last edited by keith brown : 08-30-2009 at 08:08 AM.