I wrote about this the first time back in 2019 and then again last December.
Continue reading Anonymity Ends soon.
Share this:
Anonymity Ends soon.
Tag Archives: S corp
Cheaters!
We work diligently with our clients that have S entities to ensure that they receive reasonable compensation. You do recall that pass-through companies like S entities must pay their principals ‘reasonable compensation’ (a salary commensurate with their experience, capabilities, and time worked). In so doing, the rest of the profits of the firm can ‘pass-through’ to the principals, without being subject to employment (social security and Medicare) taxes, a savings of some 15+% to augment the pass-through revenue.
Share this:
The Ides of March are upon us
Monday will be the Ides of March. No, I am not referring to the Julius Caesar masterpiece by Shakespeare (or the history to which it refers). I refer to the due date for business tax returns. 
Continue reading The Ides of March are upon us
Share this:
It’s time to rethink your corporate structure
I’ve told you all many times that the rules have changed significantly with the passage of the Tax Cut and Jobs Act (TCJA). For example, for decades, we’ve avoided setting up C Corporations for our clients, because of the double taxation whammy. But, now with the maximum (and minimum) tax rate of 21%- and the personal limitation on SALT (state and local taxes) at $ 10,000, it’s past time to reconsider our old rule of thumb.
Continue reading It’s time to rethink your corporate structure
Share this:
Business Entity- revisited for 2018 tax rules
I’ve written about how the Tax Cuts and Jobs Act (now known as PL117-95) is going to change the way we think about businesses and income. (Here’s one link– there are about 15 such posts.) Today, we’ll talk about how this new tax law changes the sort of business entity we maintain.
Continue reading Business Entity- revisited for 2018 tax rules
Share this:
Pay now or fine later?
Whoa, Nelly!
A lot of you (whether or not you are my clients) are going to get a load of …. from your tax advisors from now on. Because there seems to be no end to the potential penalties the IRS can impose on tax professionals- due to the failure of his/her clients!
Continue reading Pay now or fine later?
Share this:
Reasonable Compensation
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
Share this: