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Closely Held Corporations

The tax traps of personally guaranteeing a loan to your corporation

Business Bad Debt Deduction, Closely Held Corporations, Small Business, Small Business Owners, Small Business Tax Tips, Small Business Tips /

If you’re considering guaranteeing, or are asked to guarantee, a loan to your closely held corporation, it’s important to understand the potential tax consequences. Acting as a guarantor, endorser or indemnitor means that if the corporation defaults, you could be responsible for repaying the loan. Without planning ahead, you may face unexpected tax implications. A […]

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Planning for the future: 5 business succession options and their tax implications

Captial Gains, Closely Held Corporations, Employees, ESOP Employee Stock Ownership Plan, Estate Planning, Estate Tax, Federal Estate Tax, Federal Gift Tax, Federal Taxes, Gift and Estate Tax, Small Business, Small Business Owners, Succession Plans, Taxes and Tips, Trust /

When it’s time to consider your business’s future, succession planning can protect your legacy and successfully set up the next generation of leaders or owners. Whether you’re ready to retire, you wish to step back your involvement or you want a solid contingency plan should you unexpectedly be unable to run the business, exploring different

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Consider borrowing from your corporation but structure the deal carefully

C Corporation, Closely Held Corporations, Dividend Distribution, Shareholder, Shareholder Loans, Small Business, Small Business Owners /

If you own a closely held corporation, you can borrow funds from your business at rates that are lower than those charged by a bank. But it’s important to avoid certain risks and charge an adequate interest rate. Basics of this strategy Interest rates have increased over the last couple years. As a result, shareholders

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Tax-wise ways to take cash from your corporation while avoiding dividend treatment

Closely Held Corporations, Corporations, Dividend Distribution, Small Business, Small Business Owners, Small Business Tips /

If you want to withdraw cash from your closely held corporation at a low tax cost, the easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax efficient since it’s taxable to you to the extent of your corporation’s “earnings and profits,” but it’s not deductible by the corporation. 5

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Guaranteeing a loan to your corporation? There may be tax implications

Closely Held Corporations, Corporations, Small Business, Small Business Owners, Small Business Tips, Tax Planning /

Let’s say you decide to or are asked to, guarantee a loan to your corporation. Before agreeing to act as a guarantor, endorser, or indemnitor of a debt obligation of your closely held corporation, be aware of the possible tax implications. If your corporation defaults on the loan and you’re required to pay principal or

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Making withdrawals from your closely held corporation that aren’t taxed as dividends

Business Loans, Closely Held Corporations, Compensation, Corporations, Debt-to-equity Ratio, Dividend Distribution /

Do you want to withdraw cash from your closely held corporation at a minimum tax cost? The simplest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient since it’s taxable to you to the extent of your corporation’s “earnings and profits.” It’s also not deductible by the corporation. Five alternatives.

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Do you want to withdraw cash from your closely held corporation at a low tax cost?

Closely Held Corporations, Corporations, Small Business, Tax, Tax Deduction, Tax Planning /

Owners of closely held corporations are often interested in easily withdrawing money from their businesses at the lowest possible tax cost. The simplest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient, since it’s taxable to you to the extent of your corporation’s “earnings and profits.” And it’s not deductible

Do you want to withdraw cash from your closely held corporation at a low tax cost? Read More »

5 ways to withdraw cash from your corporation while avoiding dividend treatment

Closely Held Corporations, Compensation, Income Tax, Small Business, Tax, Tax Planning /

Do you want to withdraw cash from your closely held corporation at a low tax cost? The easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient, since it’s taxable to you to the extent of your corporation’s “earnings and profits.” But it’s not deductible by the corporation. Different approaches.

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