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Archive for S-Corp

19 Apr 2018

Written by Paul Mueller | Posted in LLC • S-Corp

When Is It Time To Become A S Corporation?

Paul Mueller, Tax Advisor, Tax Blog, Loveland, Colorado, USA, TaxConnections,

For most new businesses and business owners, keeping it simple is key. After all, launching a new business requires attention to detail and doing many things right. For that reason, most new businesses start out simply as a sole proprietorship or a Limited Liability Company (LLC). As a successful business matures, however, the savvy owner should call time out to consider the S Corporation form of business.

The owners of an active business operating as a S Corporation enjoy a distinct tax advantage over other types of tax entities, particularly sole proprietors, partnerships and LLCs. For the owner of a profitable sole proprietorship, partnership or LLC, the earnings are subject to both income tax and the 15.3% self-employment (SE) tax, which funds Social Security benefits and the Medicare health system. This SE tax is often unanticipated, particularly for new entrepreneurs, and can cause havoc with cash flow at tax time. Read more

No comments | Tags: business owners, Colorado, Limited Liability Company, LLC, Loveland, New Business, Paul Mueller, S-Corporation, Sole Proprietorship, Tax Advisor, Tax Blog, TaxConnections, USA

02 Mar 2018

Written by Thomas Kerester | Posted in IRS • S-Corp

IRS Notice States Taxpayers Will Not Be Able To Circumvent Three-Year Rule Using S Corporations

Thomas Kerester, Tax Ambassador, Tax Blog, Washington D.C., USA, TaxConnections

WASHINGTON — The Internal Revenue Service announced today that S corporations are subject to the extended three year holding period for applicable partnership interests and that regulations will be issued soon.

Carried interests are ownership interests in a partnership that share in the partnership’s net profits. Carried interests often are issued to investment managers in connection with the investment manager’s services. These interests often result in the holder receiving capital gains which are taxed at a lower rate, rather than ordinary income. Read more

No comments | Tags: carried interest, IRS, S-Corporation, Tax Ambassador, Tax Blog, TaxConnections, Thomas Kerester, USA, Washington D.C.

07 Feb 2018

Written by Lisa Nason | Posted in C-Corp • S-Corp

S Corporation Vs. C Corporation In 2018

Lisa Nason, Tax Advisor, Tax Blog, Greenville, SC, TaxConnections

Many of you are wondering how the new tax rate changes will impact you. Obviously we can’t answer that off the top of our heads as each person’s situation is different, and in many cases experts are still trying to figure out how the changes will play out. One of the biggest changes is the corporate tax rate reduction to a maximum of 21% versus the maximum tax rate for individuals being around 37%. Read more

2 comments | Tags: C Corporation, Greenville, Lisa Nason, S-Corporation, SC, Tax Advisor, Tax Blog, TaxConnections

05 Feb 2017

Written by Vincenzo Villamena | Posted in LLC • S-Corp

When To Switch From LLC To S Corp

Many US entrepreneurs set up an LLC in the beginning, because it is straightforward and not too expensive. Generally, this is a good approach for the start as LLCs offer liability protection and other advantages. However, entrepreneurs are often not aware that with increasing income, switching from LLC to S Corp makes financial sense.

Why you should consider switching from LLC to S Corp

As your income from your LLC increases, so does the self-employment tax. You earn more, you pay more tax, but your ability to contribute to retirement accounts does not change. This is where converting the LLC to S Corp has advantages. Read more

No comments | Tags: advantages, convert, LLC, Retirement Savings, S Corp, Tax Advisor, Tax Blog, TaxConnections, Vincenzo Villamena

15 Mar 2016

Written by Larry Stolberg, CPA, CA | Posted in Canada • FIRPTA • Income Tax • Individual • S-Corp

CRA Forms T1134 and T1135 Often Missed by Canadian U.S. Real Estate Investors

The T1134 and T1135 are a sample of Canadian foreign information returns like the U.S. 8938, 5471 or 8865.

A number of Canadians are investing in the U.S. real estate market with a U.S. limited partnership whose limited partners are solely Canadian residents and the general partner is a U.S. C corporation whose shareholders are also Canadian residents.

For those who want limited liability protection, this type of Read more

One comment

28 Aug 2015

Written by Barry Fowler | Posted in Corporate • Estate Planning Tax • Income Tax • Partnership • S-Corp • Small Business • Tax Planning

September 2015 Business Tax Due Dates

September 15 – Corporations

File a 2014 calendar year income tax return (Form 1120 or 1120-A) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension.

September 15 – S Corporations

File a 2014 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you requested an automatic 6-month extension.

September 15 – Corporations Read more

No comments | Tags: Business Tax Due Dates, Form 1041, Form 1065, Form 1120, Form 1120-A, Income Tax Returns, S Corporations

27 Aug 2015

Written by Barry Fowler | Posted in Corporate • Partnership • S-Corp • Trust Extensions

Partnership, S-Corp and Trust Extensions End September 15

If you have a calendar year 2014 partnership, S-corporation, or trust return on extension, don’t forget the extension for filing those returns ends on September 15, 2015.

Pass-through entities such as Partnerships, S-corporations, and fiduciaries (trusts, estates) pass their income, deductions, credits, etc., through to their investors, partners, or beneficiaries, who in turn report the various items on their individual tax returns. Partnerships file Form 1065, S-corps file Form 1120-S, and Fiduciaries file Form 1041, with each partner, shareholder, or beneficiary receiving a Schedule K-1 from the entity that shows their share of the reportable items.

If all of the aforementioned entities could obtain an automatic extension to file their returns Read more

No comments | Tags: Form 1041, Form 1065, Form 1120-S, partnership, S Corp, Schedule K-1

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