I'll be honest I'm not sure, new territory for my husband and I...it was recommended by the taxi medallion broker (not tax guy) to to set up the taxi medallion as an s-corp for both tax and liability reasons.
Apparently a lot of taxi medallion owners set up their new business as a S-corp I sopose for the tax and liability issues.
I get what your saying though about if it's worth the cost in the end it may not be worth it to have a S Corp. I will look into this more. I know when the business name was registered etc. it was filed as a C-corp by default then we were told to change it to an S Corp so that we would not be double taxed. I know my husband will be receiving weekly "rent" from the night shift driver... Maybe the s-corp protects the income generated from the weekly lease of the cab from the night shift driver to not be taxed.
As you can see, my husband and I are still ignorant about all of this. This is new territory for us and I'm trying to learn more as possible. I'm waiting now to here back from the Tax guy to find out when he is available. Mid-June the cab will be officially all set up and ready to go...so there is some time left to many any necessary changes I'm guessing?
