I typically do my own tax return, but this is beyond me.
In June 2010 I left a salaried + Commission position at an insurance agency and became an Independent Agent. I formed a corporation with a tax year ending in June 2011, that would engage in the business of selling Group Health Insurance. During the next six months all income was deposited into a corporate bank account. I have not been paid a salary by the corporation and no estimated or withholding tax deposits have been made.
Late last year I was offered several opportunities to become involved with a large insurance agency.
I have accepted an offer(starting March 2011) salary + commission position with the agency and now I am questioning what to do with the corporation.
Would it be best to elect a sub-s corporation so that all income flows thru to me or would it be better to pay myself a salary for June – December 2010 and file the employer taxes with the IRS and then close out the corporation?
Advice would be helpful, also what would this cost if I used a CPA?