LLC C CorpA shop that does not exist

This shop is made up. It is not a client. Nothing in it happened, and no result here is a result we delivered.

Picture a counter that sells notebooks and a cup of coffee. One person owns it. No company exists yet. Suppliers get paid. A receipt goes in the drawer. At the end of a week the owner wants to know which box to tick before a lawyer files anything.

If the owner ticks the LLC box and stays the only owner, the federal default usually drops the activity onto the owner's own return. The shop can still have a legal name. The return may still be the person's return. Payroll, if the owner later hires help, would be set up with a provider the company runs. We would set the rail up. We would not run payday.

If the owner ticks the corporate box, the company files Form 1120. Profit left in the company is taxed there. Money taken out as a dividend meets the owner again. A wage for hours actually worked is the other exit, and it has to be reasonable for the work. The made-up shop does not have a wage figure, because a figure would be invented. In a real shop the books would show the hours and the pay.

Either way the certificate is filed by the state office or by a lawyer. We would read the tax life first. The first month would close only when the bank agrees with the drawer. A deadline such as the 15th day of the fourth month would go on the same calendar as the rent, if the corporate box is the one that was ticked and the year is a calendar year.

The point of the fiction is the sequence. Screen, then tick, then books, then a month the bank accepts, then a return. Skip the screen and the shop inherits a tax life nobody chose on purpose.