Closely Held Corporations – DougFreemanCPA.com

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 / Douglas Freeman

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 / Douglas Freeman

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 / Douglas Freeman

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 / Douglas Freeman

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 / Douglas Freeman

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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