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The Tax World for Businesses

No Avoidance of the Taxing Authorities.

If you believe that you know all of the taxes your business may be exposed to, you will probably be wrong. Is it 4, 5, more?

The best way to minimize the impact of taxes on your business is to develop an overall tax strategy plan. This plan will help you and your tax adviser to anticipate the tax or filing requirement before it comes up. Planning also allows you to plan to take advantage of every possible legal reduction of your taxes.
All Businesses will have Certain "Basic" Taxes.

What is "Reasonable Compensation"?

Reasonable Compensation is a current high priority issue for the IRS concerning all corporations, especially S corporations

Wage Compensation for Corporation Officers

Corporate officers are specifically included within the definition of employee for FICA (Federal Insurance Contribution Tax Act), FUTA (Federal Unemployment Tax Act), and federal income tax withholding under the Internal Revenue Code. When corporate officers perform services for the corporation, and receive or are entitled to receive payments, their compensation is generally considered wages. Sub-chapter S corporations should treat payments for services to officers as wages, and not as distributions of cash and property or loans to shareholder or limited liability company members.

Choosing A Preparer For Your Tax Situation

The choice of a tax preparer is not easy. All preparers are not capable of handling all tax situations. The choice of a qualified tax preparer is very dependent on your financial activities and types of income.

See how to match the preparer with the situation.

If your incomes are Level 1.

Basic tax situation, incomes from employment (W-2’s not 1099-Misc), interest and/or dividends (under $400), unemployment, and taxable pension payments. You could have simple itemized deductions

Your Tax Preparer Options ...

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