Tag Archives: reasonable compensation

New Venture Reasonable Compensation

No Gravatar

I had a discussion with a new entrepreneur the other day.

They left their full-time position and started their own business.  (One of the key factors to remember during this discussion is that the new business is different from the full time employment they left.  Had that not been true, the analysis would be different.  I will mention some of those differences as we proceed.)

Continue reading New Venture Reasonable Compensation

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter
Share

Business Taxes under PL 115-97 (part 1)

No Gravatar

We’ve discussed the personal tax (Part 1and Part 2) provisions of the newly enacted tax law.  Over the next three days, we’ll discuss the business provisions of the law.

Continue reading Business Taxes under PL 115-97 (part 1)

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter
Share

Are you reasonable?

No Gravatar

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?

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter
Share

Goldilocks makes decisions for the IRS now?

No Gravatar

As I have recently written, the SEC (US Securities and Exchange Commission) is not currently enforcing the rules about executive pay reporting.  This, despite the fact that most public companies pay excessive salaries to their executives. And, the IRS rarely challenges the pay that these public companies afford their bloated executive ranks.

Continue reading Goldilocks makes decisions for the IRS now?

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter
Share