Alex Davidoff
Member
Without any further ado I need first hand confirmation on the legal entity registration options for contractors. Since S-Corp is the obvious choice, my question is can it be incorporated in a state (tax friendly) other than the state the business operates in? Reasons for doing it? All employees (including owners) do not pay state income taxes on salaries and dividends when distributed are only taxed on federal level. Note, I'm talking about registering the Corp in one state and only file Certificate of Authority for Foreign Corporation with the state the business will operate in, and not the scenario where a separate legal entity of the same company is registered in the state of operation. Since you all seem to share the general notion that drivers are underpaid, here's a way to offset it. I doubt FedEx could have any legal way to prevent this.
I come from corporate business and found the financial terminology used in the FedEx contractor business to be extremely fast&loose. That adds a lot of confusion and repeated questions.It took me a while to wrap my brains around the fact that brokers list "cash flow" as a single figure (cash flow not viewed over a period of time is useless number) while actually mean "gross profit" which everyone seems to call "net" which is equally incorrect. And because this is a very simple business in terms of structure it's very easy to itemize and use the simplest possible formula: Revenue - Cost of Service/Operating Expenses - Gross Profit - Net Profit. Just a thought...
Finally, any advice or thoughts on doing the business in the state of Georgia?
Thank you for your comments in advance!
I come from corporate business and found the financial terminology used in the FedEx contractor business to be extremely fast&loose. That adds a lot of confusion and repeated questions.It took me a while to wrap my brains around the fact that brokers list "cash flow" as a single figure (cash flow not viewed over a period of time is useless number) while actually mean "gross profit" which everyone seems to call "net" which is equally incorrect. And because this is a very simple business in terms of structure it's very easy to itemize and use the simplest possible formula: Revenue - Cost of Service/Operating Expenses - Gross Profit - Net Profit. Just a thought...
Finally, any advice or thoughts on doing the business in the state of Georgia?
Thank you for your comments in advance!