(Pinoy Express International Inc.) Partnering with Schneider National and The Choice Program

So after a fun filled couple of days from Ohio to KY, TN to IN, IN to GA, running around looking for an empty, ending up at the Atlanta OC for a day, I've finally arrived in Charlotte via Pageland, SC.

It's a day early but will give me time to catch up on some laundry, I have 3 of the 6 dryers currently in use. I'm glad it's 3am.

Let's see, I'm INCORPORATED...... Oh yeah! A radical turn of events with this one.

So after extreme consideration and while registering for my Ohio withholding tax as well as my Ohio unemployment tax (both easily done via the internet and necessary for payroll), I've decided NOT to register as an "S" Corp and instead fully embrace my current "C" Corp status.

By default, any "corporation" is incorporated initially as a "C" Corp and it is up to you to file IRS FORM 2553 to get an "S" Corp clarification. You have 75 days from the date of your initial filing to do this.

Why you may ask? I'm sure you have all heard of the "double" taxation that goes along with a "C" Corp.

Let me explain my take on the "double" taxation first. I don't look at it as double taxation. Here's why.

Currently I am a company driver. I am taxed by the IRS according to what I claim on my W-4. This does not change now that I own a company. (Everything stays the same in my life and with my relationship with the Internal Revenue Service)

What changes is that now my company gets taxed on its net profits. The key word here is "ITS" referring to the corporation. Referring to a business. Referring to a legal SEPARATE ENTITY from myself.

Why do most consider a "C" Corp as being the means of double taxation? I say it is the mindset of the individual not being able to disassociate themselves from their new company.

They believe that because they own the company and are also paying themselves wages through payroll that they themselves are being taxed twice. This could not be further from the truth.

They as an individual are still only being taxed once when they receive their W-2 and file their taxes.

The "company", an entirely separate and legal entity, ("person") is also only being taxed once.

The failure to be able to process this correctly, internally within someone's mind is simple psychology.

We have formed, no matter how limited, a form of entitlement. You believe that you as an owner and you as the person should only be taxed once because there is only one you.

The truth is that you have created a "duplicate" of yourselfs inner id subconsciously, and without knowing, fight with it trying to understand my logic. It's ok..... It's my post, no need to understand my logic. Keep reading and I'll show you how forming a "C" Corp makes sense to me.

DISCLAIMER!!! A "C" Corp may not be for everyone, but it benefits me greatly and here's why.

The "INTERNATIONAL" is in my company's name for a specific and purposeful reason. Not just to make my company sound like more then it is.

In an "S" Corp, you can NOT have foreign investors and you're limited to only 100 shareholders so you could never go "public" while in "S" Corp status.

Secondly, I am placing my company in a position to hold it's net income which will only be taxed at 15% as compared to a much higher rate filing in "S" Corp status. You are taxed at a rate which reflects your personal taxable income while in "S" Corp status.

You also can create an HRA (Health Reimbursement Account) with a "C" Corp only. What this allows my company to do is not only supply me with my personal health care expense money while keeping it separate from personal taxable income that will be written off and become a "wash" ( no net savings or gains tax wise for company or individual as the amount should offset equally) while doing my personal taxes; it allows for my company to reduce its taxable net income. (I know this is confusing to understand this benefit but PM me and I'll explain in greater detail if you're interested)

There are many other LEGAL ways to continue to reduce the taxable net income of the company while at the same time LEGALLY padding your personal pockets without increasing your personal taxable income.

You do not get these same benefits with an "S" Corp as all money is passed through to your personal tax return.

LEGAL DISCLAIMER!!!!

I am not a tax professional. Consult your own tax professional before making any tax decisions. Being said, I relinquish all rights and responsibilities of accountability associated with the individual mismanagings of others from not completely understanding this post.

 

Besides the rant about my company's "C" Corp status........

I've set up payroll through ADP and filed my filings with the state of Ohio for payroll taxes due.

I've gotten all things set up and initiated with CAPITAL ONE N.A. (referred herein and furthermore as "THE BANK") HAHAHA

I've determined I'll use ATBS for accounting for now but will be looking elsewhere as their knowledge is slightly lacking on certain aspects of MY business and where it's heading.
This is not to say ATBS isn't qualified or a knowledgeable entity of Schneider, they are just not designed for my future needs.

I bought a laptop

Did hours and hours and then more hours upon hours of hours of research and education

Ran numbers, variables to those numbers, more numbers and more variables and variables upon variables

Got very little sleep while trying to perform my current job responsibilities as well as do research and crunch numbers and start my very own company from scratch over the last couple months all while ONLY using my weekly paychecks as funding for all things needing funding

And just finished a #### load of laundry at the Charlotte OC.

What I've learned and realized over these past couple months is this.....

Are there many multiple companies out there who you need or want to help your business become successful, all completing for your business, YES.

Could I have spent more time comparing those companies trying to punch every penny as to increase my potential bottom line, YES.

Did I make all the right choices? My answer is NO. I know that as time goes on I will learn better ways, more efficient ways of doing things. Maybe I'll find cheaper business partners that don't lack the quality I've gotten thus far.

But in the end what I must say is this.

Every day is a learning experience. As long as you give it your best effort, learn and try to better yourself each and every day, and as long as you keep focused on your goals and what's important in your life, no one can fault you for trying.

Those who do not take risks will never achieve greatness so take risks and take many of them.

I hope that those that are reading this will find some sort of inspiration as I will add this..... A little personal history.

I come from a family who has been everything but one to me. I come from no college background or silver spoon. I have lived on the streets and with help from friends survived a pretty brutal life. But what I don't do is make excuses.

Your life is yours to live as you want. You make your own choices as whether your past will chain you to remain there or whether you break those chains and strive to succeed.

I've chosen to break my chains and you can too.

Until next time......

 

Respectfully and kindly, I think you missed the point of that post....

You are correct though sir in your understanding of the "double taxation" and to avoid the double taxation completely at this stage of the game, no dividends will be paid out to any shareholder for any issued stock.

I understand that post may be a little incoherent but in my defense it was written after being up for over 24 hrs.

My election of a C Corp has little to do with the worries and concerns of the "double taxation" as there will be none currently but has to do with the ability for foreign investors.

I heed your words but assure you I'm not ignorant of the issue, I'm just ignorant of the ability of communicating my thoughts correctly and coherently after being awake for so long.

But I truly thank you and will continue learning from you as well as others. I welcome all knowledge

 

Not hung up at all sir. Already in negotiations.

 

Sir, as you stated, these were your figures. However, I shall point you out as a naysayer.

There is no real place for you on this thread. You can point out your misfortunes as that is what I would call them only making $28,000 for the year you are referring to.

I appreciate your concern for my lively hood but I assure you there is truly no need.