Personal services corp?

[rlee53]

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

http://www.led-inc.com

 

[Theophilus]

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

http://www.industrialdesignhaus.com

Reason trumps all. And awe transcends reason.

 

[DonPhillips]

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