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An essential tax deadline is coming up — and it’s unrelated to your 2024 return filing

Annualized Income Method, Individual Income Tax, Individual Tax Tips, Quarterly Estimated Tax Payments, S Corporation, Sole Proprietors, Taxes and Tips / Douglas Freeman

Tuesday, April 15 is the deadline for filing your 2024 tax return. But another tax deadline is coming up the same day, and it’s essential for certain taxpayers. It’s the deadline for making the first quarterly estimated tax payment for 2025 if you’re required to make one. Basic details You may have to make estimated […]

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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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Is an S corporation the best choice of entity for your business?

Business Income Tax, S Corporations, Small Business, Tax Deduction, Tax Planning / Douglas Freeman

Are you thinking about launching a business with some partners and wondering what type of entity to form? An S corporation may be the most suitable form of business for your new venture. Here’s an explanation of the reasons why. The biggest advantage of an S corporation over a partnership is that as S corporation

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Steer clear of the Trust Fund Recovery Penalty

Income Tax, Internal Revenue Service (IRS), Small Business, Social Security / Douglas Freeman

If you own or manage a business with employees, you may be at risk for a severe tax penalty. It’s called the “Trust Fund Recovery Penalty” because it applies to the Social Security and income taxes required to be withheld by a business from its employees’ wages. Because the taxes are considered the property of

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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 »

Should you elect S corporation status?

Business Income Tax, Federal Taxes, Internal Revenue Service, S Corporation, Small Business, Social Security, Social Security & Medicare (FICA) taxes, Tax, Tax Cuts and Job Acts (TCJA), Tax Savings / Douglas Freeman

Operating a business as an S corporation may provide many advantages, including limited liability for owners and no double taxation (at least at the federal level). Self-employed people may also be able to lower their exposure to Social Security and Medicare taxes if they structure their businesses as S corps for federal tax purposes. But

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