Built-in Gains Tax – DougFreemanCPA.com

Should you convert your business from a C to an S corporation?

(LIFO) Last In, First Out Inventory Method, C Corporation, S Corporation, Small Business, Small Business Owners, Small Business Tips / Douglas Freeman

Choosing the right business entity has many implications, including the amount of your tax bill. The most common business structures are sole proprietorships, partnerships, limited liability companies, C corporations and S corporations. In some cases, a business may decide to switch from one entity type to another. Although S corporations can provide substantial tax benefits over C corporations in […]

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Growing your business with a new partner: Here are some tax considerations

Accounts Receivable, Depreciation, Ordinary Income Tax, Partnerships, Small Business, Small Business Owners, Small Business Tips / Douglas Freeman

There are several financial and legal implications when adding a new partner to a partnership. Here’s an example to illustrate: You and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to the business. Assume that your basis in

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Tax considerations when adding a new partner at your business

Income Tax, Partnerships, Small Business, Small Business Owners, State Tax, Tax Planning, Tax Savings / Douglas Freeman

Adding a new partner in a partnership has several financial and legal implications. Let’s say you and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to it. Let’s further assume that your bases in your partnership interests are

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Tax issues to assess when converting from a C corporation to an S corporation

C Corporation, Past-Through Entities, S Corporation, Small Business / Douglas Freeman

Operating as an S corporation may help reduce federal employment taxes for small businesses in the right circumstances. Although S corporations may provide tax advantages over C corporations, there are some potentially costly tax issues that you should assess before making a decision to switch. Here’s a quick rundown of the most important issues to

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The right entity choice: Should you convert from a C to an S corporation?

Business Income Tax, C Corporations, Deductions, Employees, Income Tax, S Corporations, Shareholder, Small Business, Tax, Tax Planning / Douglas Freeman

The best choice of entity can affect your business in several ways, including the amount of your tax bill. In some cases, businesses decide to switch from one entity type to another. Although S corporations can provide substantial tax benefits over C corporations in some circumstances, there are potentially costly tax issues that you should

The right entity choice: Should you convert from a C to an S corporation? Read More »

How business owners may be able to reduce tax by using an S corporation

Limited Liability Company, LLC, Medicare Taxes, S Corporation, Self Employment Tax, Small Business, Social Security / Douglas Freeman

Do you conduct your business as a sole proprietorship or as a wholly-owned limited liability company (LLC)? If so, you’re subject to both income tax and self-employment tax. There may be a way to cut your tax bill by using an S corporation. Self-employment tax basics. The self-employment tax is imposed on 92.35% of self-employment

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Thinking about converting from a C corporation to an S corporation?

C Corporation, S Corporation, Tax, Tax Planning, Tax Savings / Douglas Freeman

The right entity choice can make a difference in the tax bill you owe for your business. Although S corporations can provide substantial tax advantages over C corporations in some circumstances, there are plenty of potentially expensive tax problems that you should assess before making the decision to convert from a C corporation to an

Thinking about converting from a C corporation to an S corporation? Read More »