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Personal services corp?

Personal services corp?

Personal services corp?

(OP)
I've filed for incorporation as a C - corp with my state and am now filling out the Federal Tax ID/EIN application. I don't know if I am a "personal services corp" or not.  I'll be doing machinery design, providing turnkey machines, and some standard line of machines that are already designed.  I don't know what percent of sales from each activity yet.  

The personal services corp is taxed at a flat 35%, otherwise there is sliding scale based on taxable income

I am thinking since I will have some mix of products and services, that I am not a personal services corporation. Does anyone know if I am correct?

Richard
www.led-inc.com

RE: Personal services corp?

Call your state and find out.  I'd guess personal services might be those that involve tipping--perhaps a waiter or hairdresser or such?

Jeff Mowry
www.industrialdesignhaus.com
Reason trumps all.  And awe transcends reason.

RE: Personal services corp?

I think Theo has it right, personal services I would think is not the right description.

Personally, I use an S-corp so that all profits flow through the shareholders (only me, in my case) and taxed only once.  Otherwise, the C-corp pays taxes and then the shareholders pay taxes again.

My CPA friend and CPA sister gave me this advice, but you can say, I got what I paid for.  So far, so good.

Don Phillips
http://worthingtonengineering.com

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