As long as you do not operate as a partnership (partners only get a draw, fully subject to all taxes, including payroll taxes), the owners of an enterprise are expected to be paid a salary. That’s the IRS position- the one that counts.
Continue reading Are you reasonable?
One of the services we provide our small business clients is to insure that the payment of reasonable compensation. No, I don’t mean what they pay their employees (although we do that, as well, when requested). No, I am talking about the pay they take for themselves- the owners of the S Corporation or an LLC operating as an S corporation.
Continue reading Reasonable Compensation
Soooo. You’ve heard it. You know it. Corporations all complain about that 35% tax rate- but few, if any, are paying taxes at that rate. Big companies pay virtually ZERO % and middle-market companies pay 15 to 18%. (By the way, a whole slew of single-owner corporations pay a mandated 35% tax rate!) And, our clients- the ones we convinced to form LLC’s and S entities to save on taxes want us to explain how come they are not paying taxes at the 15% to 18% rates. Continue reading Tax Rates- Pass Throughs and C’s
Continue reading Shared Group Homes- with a Twist and a Benefit
Yesterday, we talked about individual income tax filing. Today, we will discuss the forms businesses, trusts, estates, and partnerships must file.
Continue reading T-8 (yes, really!)
If you are considering the purchase of a property for investment, one you plan to rent to others, we need to talk. Too many folks buy these properties and then find that, unlike conventional businesses, rental property management has its own set of regulations- and tax considerations. (Part of the reason is that real estate businesses, while cash flow positive, often create negative income considerations for taxes, since depreciation can be a substantial factor. And, as opposed to other businesses that don’t show a profit for 3 of 5 years, these are allowed to continue and are not considered “hobbies”.)
Continue reading So you want to be a real estate mogul?
