2019 sole proprietorahip. In 2020, I incorporated and obtained the EIN. For 2019, do i continue to file as a sole proprietorship or switch to filing corporate returns.
You'll need to sign in or create an account to connect with an expert.
The corporation will file a return (either an 1120 for a C corporation or 1120-S for an S corporation) beginning with the tax year the corporation starts business operations, presumably the 2020 tax year.
If you operated as a sole proprietor at any time during the 2020 tax year, then you will have to prepare a Schedule C for that part of the year the sole proprietorship was open for business.
Note that you can transfer assets from your sole proprietorship to the newly formed corporation without recognizing any gain or loss provided you only receive stock in exchange and are in control of the corporation immediately thereafter.
You should definitely seek professional tax and legal guidance for this matter, particularly since 2020 will be the first year of the corporation's existence and operation.
The corporation will file a return (either an 1120 for a C corporation or 1120-S for an S corporation) beginning with the tax year the corporation starts business operations, presumably the 2020 tax year.
If you operated as a sole proprietor at any time during the 2020 tax year, then you will have to prepare a Schedule C for that part of the year the sole proprietorship was open for business.
Note that you can transfer assets from your sole proprietorship to the newly formed corporation without recognizing any gain or loss provided you only receive stock in exchange and are in control of the corporation immediately thereafter.
You should definitely seek professional tax and legal guidance for this matter, particularly since 2020 will be the first year of the corporation's existence and operation.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
nh_624
New Member
malebron
New Member
2K5
New Member
Larry7980
Level 1
ar2024
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.