For the S-Corp business owner it is smart idea to consider setting up a retirement plan such as a 401k. If you want to attract the best employees you need to offer a competitive compensation package. This not only includes a salary but a benefits package as well. It’s great when the IRS allows an S-Corp small businesses to offer their employees a benefit and still receive a tax deduction. The credit for small employer pension plan start-up costs does just that. It covers two types of expenses: retirement plan set up costs and employer contributions. Let’s walk through what is available and h ..read more

Are you an S-Corp shareholder? Are you looking to start a new S-Corp or perhaps purchase one? If you answered yes to any of those questions take a few minutes to read this article to find out how the new Beneficial Ownership Information requirements will impact you. Big brother has always been watching but now he wants to zoom in a little bit closer. The U.S. government has made national security a priority and this includes fighting money laundering and tax cheats. Effective January 1, 2024 the Corporate Transparency Act requires certain reporting companies to disclose their key owners by fi ..read more

Converting an independent contractor to an employee involves several steps, and when doing so it’s important to comply with relevant labor laws and regulations. This is a general guide so keep in mind that rules may vary depending on your location and industry. It’s always advisable to consult with legal and HR professionals to ensure compliance. Independent Contractor vs. Employee – What’s the Difference? People often are confused with what actually is an independent contractor and what is an employee. The employment status of the work that you do has far reaching effects for tax purposes ..read more

There are many advantages to starting an S Corp in New York with the main one being tax benefits. However, with that comes forms and requirements that you must meet to set your business up as an S Corp and to stay compliant. S Corp vs. Other Business Structures There are several considerations when choosing a business structure but most owners select the entity that will allow them to pay the least amount of federal or state income tax. A sole proprietorship is a business that is not incorporated. The individual runs the business and reports its income or loss on their personal income tax r ..read more

How do you pay a stipend? In what ways will affect our taxes or the person receiving it? We will go over this and more so you will have a clear understanding of how stipends work. How Stipends Work Stipends are typically fixed amounts given to cover financial expenses. They are often paid before the expenses are incurred. Stipends are common among students or interns who are in training and do not receive a salary. They can also be given to employees. Minimum wage requirements do not have to be met so they offer a flexible alternative to traditional employer-employee compensation. Employee ..read more

Why are Tax Issues So Important in Divorce? Divorce or separation can be stressful and can turn someone’s world upside down. However, when it happens divorce settlements often result and marital assets don’t always get distributed the way you expect. We explore situations in which divorce affects income taxes and your tax liability including property transfers and noncash property settlements. Do You Have to Pay Tax on Alimony? Alimony is a court-ordered financial settlement that someone pays to their former spouse. Payments resulting from a separation agreement is considered alimony if all ..read more

People move for better weather, economic opportunities, to be closer to extended family and even for tax incentives. If you own an S-Corporation, we will discuss how moving the business to another state can affect you. You have several options to consider when moving an S-Corporation to another state including: Setting up a new S-Corp in the new state and then merge the old S-Corp into the new one Keeping the current S-Corp and registering another entity in the new state Closing your current S-Corp and then starting a brand new corporation in the new state Domesticating your entity to the ne ..read more

Your S-Corp Request and Acceptance Letter An S-Corp has its advantages and disadvantages and these must be considered before you choose this tax status. It’s not automatic. Before you choose to go down this path you should know that in order to qualify as an S-Corp you first must meet the following requirements: Have no more than 100 shareholders Individuals who are shareholders must generally be U.S. citizens or U.S. residents (trusts and estates may also qualify) Be a domestic corporation Have only one class of stock Profits and losses must be distributed in proportion to the owners’ intere ..read more

So you’ve set up your S-corp and now are at the point where you need to take money out. What’s the best way to do it? Will I have to pay tax on the money? These are all common questions for new S-Corp owners. We will go over the different payments and discuss the impact they can have on your taxes. Distributions S-Corporations are pass-through entities. This means that the income that the business makes will be passed on to the owners who then include the income on their own tax returns. The investment S-Corp owners have in their company is called “basis” for tax purposes. Some ways in whic ..read more

All big businesses were once small businesses. Many were small mom and pop shops or one-person operations. You may be in a situation now where sales has improved and you are thinking about hiring your LLC’s first employee. Congratulations! That’s a great accomplishment but, now that you will wear the hat of an employer, there will be new responsibilities to be aware of. A good starting point when determining if, or when, to make your first hire is your budget. Make a list of tasks that you will want the new hire to take on and then determine what other employers in your area are paying simi ..read more