I had a meeting the other day with a very talented musician. He’s been preparing a brand new album and he wants to begin operating as a real business.
Continue reading Ready, set…
We’ve seen what could be happening with our personal taxes. (Part 1 here; part 2 here. And, the preamble.) Now, let’s see what changes the House plans for US business taxation.
Continue reading HR-1, Biz 1
No. I am not worried about the “unlucky” number 13 that is today’s secular date. (It is also Shushan Purim, 15 Adar.) I’m worried that many of you have forgotten that the rules have changed.
Continue reading Uh-Oh.
I’ve written about reasonable compensation (as recently as two days ago, I might add). Which is a complicated way of saying that when you are the owner of a company, you must receive a salary that reflects your efforts and your worth.
Continue reading #1 Purchase
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