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Thread: Corperation Question

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    Featured Member Miss_Luscious's Avatar
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    Default Corperation Question

    If I form a Corperation with my fiance as my partner and I go to get another apartment or a house or anything else that needs income verification, can myself or my fiance type up and sign somethng on company letterhead that states how much I make? Does it work that way if you make the company yourself? Sorry if this is a little confusing. I'm holding a screaming baby and my 4 year old keeps asking me questions.
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    Quote Originally Posted by Katrine View Post
    Ya'll bitches need to calm down. Cerously.
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    Veteran Member DJ_WuLf's Avatar
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    Default Re:Corperation Question

    Yes. but remember that all CORPORATE information is public knowledge. It's really easy to find out that you are an officer in the Corp. that verified your income.

    The real kicker here is when the bank (or worse the IRS) asks you for your last 3 years tax returns which BETTER match your stated income from your "Corporation".

    I don't think this will work for what you want to accomplish.
    14 years working in Strip Clubs. "What a long strange trip it's been"

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    Featured Member Miss_Luscious's Avatar
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    Default Re:Corperation Question

    Thanks for that info. I'm not trying to get over on anyone though. I do plan on reporting all my income for this year, I just haven't done it for the past couple years (before I knew how important it was to do so) and I'm trying to get a car loan. Is it a bad thing to be an officer of the corperation that verifies my income?
    "A stupid man's report of what a clever man says is never accurate because he unconsciously translates what he hears into something he can understand." - Bertrand Russell

    "It's just a matter of people having low self esteem and being way too easily offended." -Random Guy on a Internet Forum

    Quote Originally Posted by Katrine View Post
    Ya'll bitches need to calm down. Cerously.
    In other words: Boo-motherfucking-hoo

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    Veteran Member DJ_WuLf's Avatar
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    Default Re:Corperation Question

    My point is that any lending institution is going to want verification of your letter (especially if you are an officer of that Corp.). That may be as simple as a phone call but usually requires that you present your tax returns for the past several years. I'm assuming in your case that your past tax returns aren't going to match the income your letter is going to claim.

    The date of incorporation is also public info. Its going to look funny if you are verifying income for a year from a Corp. that has only existed a month.

    Also, it isn't free to create a Corporation. You have to file with the Sec. of State and meet the many requirements of incorporation such as paying corporate taxes (which are separate from and in addition to individual taxes). Also remember that Fed and state witholding and social security/medicare must be accounted for on this income. It might get REAL Expensive.

    No slam intended but YES you are trying to "get over" on someone. The IRS by not reporting all your income for the past years. Difficulty obtaining credit is the price you pay for ...... well what you didn't pay in taxes.

    You're not the first person to try so financial companies watch out for this kind of thing. Usually a larger down payment and a higher interest rate will bypass the need for any creative income verification.
    14 years working in Strip Clubs. "What a long strange trip it's been"

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    Default Re:Corperation Question

    Is it a bad thing to be an officer of the corperation that verifies my income?
    Technically speaking, you're under no obligation to report the fact that you are an "officer" of the corporation that is writing your paycheck. If the bank decides to check though, then this would definitely be perceived with a raised eyebrow - particularly if the corporation is newly founded.

    Also be aware that forming and running a corporation which pays employees will add complexity to your life. You'll have an extra tax return to file. You'll have withholding tax, workmen's comp and other payments which must be made frequently on behalf of the corporation. Plus corporations develop a credit history the same as individuals. My point is that establishing a corporation basically allows you to start out with a clean slate, but that slate can quickly accumulate black marks.

    I agree that if the only reason you're considering incorporation is to get a car loan, it would be less expensive in the long run to simply go with a "subprime" loan.

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    Featured Member Miss_Luscious's Avatar
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    Default Re:Corperation Question

    Thanks again. I realized how important it was to declare all my money once I started coming to SW. Before that I thought ,"Hey! Free Money for me!" I am now feeling the sting of that line of thinking . Ah well.... A bigger own payment it is.
    "A stupid man's report of what a clever man says is never accurate because he unconsciously translates what he hears into something he can understand." - Bertrand Russell

    "It's just a matter of people having low self esteem and being way too easily offended." -Random Guy on a Internet Forum

    Quote Originally Posted by Katrine View Post
    Ya'll bitches need to calm down. Cerously.
    In other words: Boo-motherfucking-hoo

  7. #7
    Featured Member Miss_Luscious's Avatar
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    Default Re:Corperation Question

    I almost forgot! The reason I was asking was because I do work for myself and I want to incorperate some time in the near future. Once I do that, I will work for the Corperation. Many apartment complexes will accept a letter from your employer as income verification but I am my employer so in that case i guess I would write my own letter and sign is seeing as I am the CEO. Right?

    Thats what I wa trying to say in the first place .
    "A stupid man's report of what a clever man says is never accurate because he unconsciously translates what he hears into something he can understand." - Bertrand Russell

    "It's just a matter of people having low self esteem and being way too easily offended." -Random Guy on a Internet Forum

    Quote Originally Posted by Katrine View Post
    Ya'll bitches need to calm down. Cerously.
    In other words: Boo-motherfucking-hoo

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    Veteran Member DJ_WuLf's Avatar
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    Default Re:Corperation Question

    There is more to income verification than a "letter" from your employer.

    Being the CEO (or any officer) of a new and un-proven Corporation is kind of like being self-employed. Your credit history is going to be based on your prior tax returns AND your credit report/FICO score.

    YES, in that case you could write your own letter and sign it BUT .... it won't be accepted without additional verification by any bank, finance company or real estate developer.

    I understand the theory of what you want to do and I agree it sounds like it should work but....... I don't think it will until both you and your Corp. develop a 2-3 year history.

    I have been CEO of my own S-Corporation for 15 years. I still have to prove my income everytime I get a loan and they ALWAYS ask for tax returns for the past 3 years. Just passing along my own experiences. YMMV
    14 years working in Strip Clubs. "What a long strange trip it's been"

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    Featured Member Miss_Luscious's Avatar
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    Default Re:Corperation Question

    Once again, Thank You very much. The more information I have the better off I am.
    "A stupid man's report of what a clever man says is never accurate because he unconsciously translates what he hears into something he can understand." - Bertrand Russell

    "It's just a matter of people having low self esteem and being way too easily offended." -Random Guy on a Internet Forum

    Quote Originally Posted by Katrine View Post
    Ya'll bitches need to calm down. Cerously.
    In other words: Boo-motherfucking-hoo

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    Default Re:Corperation Question

    Also, most places won't look at the letter you signed. They'll want a letter from your ACCOUNTANT. At least that's how my mom has always had to "prove" income. Have her accountant write the letter...and add the tax form copies.

    Depending on which state you live in, the cost to start a coporation can be anywhere from $300 - $750. It also takes several weeks to get the "approval" at which point you turn around and begin dealing with the IRS. It took my fiance and I a couple of months to obtain the approval and EIN's.

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    Featured Member GnBeret's Avatar
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    Default Re:Corperation Question

    Quote Originally Posted by Miss_Luscious link=board=6;threadid=13250;start=msg173175#msg173 175 date=1094839470
    If I form a Corperation with my fiance as my partner and I go to get another apartment or a house or anything else that needs income verification, can myself or my fiance type up and sign somethng on company letterhead that states how much I make? Does it work that way if you make the company yourself? Sorry if this is a little confusing. I'm holding a screaming baby and my 4 year old keeps asking me questions.
    Yes, but...

    Not sure what you're trying to do here, but be very careful re who it is that you're making these kinds of representations to, as well as what it is that you're specifically trying to accomplish each time you do so. There are criminal provisions covering almost all financial institutions, real property transactions, and interstate commerce - as well as corporate laws for both the state you're in and the state in which you incorporate.

    Short version = don't start screwing around with this stuff if you don't know what you're doing, K? It's a minefield, and if you're going to go this route, you need to spend the money on an attorney, tell him what you want to do, let him set it up, and then listen to what he tells you when he explains what you can and cannot do with the corp.

    PS - if you do decide to go this route and are interestedin privacy, i.e., nobody being able to run the corp. down and figure out who it really is, check out Nevada. Can amend and restate articles of incorp. after initial incorp., and omit names of all incorporators, directors, officers and stockholders! Makes it very difficult for average person to run.

    Be careful!
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    Default Re:Corperation Question

    If you have a good credit score you can get a "no doc" loan, which is basically a way of saying you have money but haven't claimed it, etc. Typically you can get a no doc loan with 6-12 months of bank statements showing your income, or a letter from your accountant, or the kind of letter your talking about (i think?), with more or less documentation required depending on your credit score.

    Lena



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    Featured Member Miss_Luscious's Avatar
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    Default Re:Corperation Question

    That's why I love Stripper Web! There's a wealth of information here. Thanks again everybody.
    "A stupid man's report of what a clever man says is never accurate because he unconsciously translates what he hears into something he can understand." - Bertrand Russell

    "It's just a matter of people having low self esteem and being way too easily offended." -Random Guy on a Internet Forum

    Quote Originally Posted by Katrine View Post
    Ya'll bitches need to calm down. Cerously.
    In other words: Boo-motherfucking-hoo

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    Featured Member scorpio's Avatar
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    Default Re:Corperation Question

    if you are self employed and incorporated, you can use this company to sign verifications. The verifier will want you to prove you are self employed, so they may want a copy of articles of incorporation, a business licence, a business card, etc. This is very simple to supply. How do you think business owners get loans? You just need to verify that the company you put on the application is yours.

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