I have just started an LLC my official beginning of my
I have just started an LLC my official beginning of my fiscal year was Oct. 26 2016 and I registered my business through legal zoom which one of the offers they give you is a compliance calendar and I got a notification saying my quarterly tax date is jan. 16 2017 so pretty soon. But I know I am a pass through entity and everything that I have understood says I file my business taxes with my personal taxes. Also all my company has acquired are expenses there has been no sales non employee payments or any of that so not really sure what I am required to file on the 16th or if I am required to since my company had no revenue or sales just expensesJA: You just pay a $5 deposit now and the rest only when you get a reply from the Accountant. All of this is 100% satisfaction guaranteed, so you can get a refund if you're not happy for any reason.Customer: how do I pay the deposit and how much more am I expected to payJA: It's only $5 .Customer: how do I pay thatJA: When we are ready I'll take you to the appropriate web page.Customer: okay im readyJA: Excellent. The Accountant can walk you through setting up an LLC or see if that's the best choice for what you want. Is there anything else the Accountant should be aware of?Customer: I already have set up my business I just need a tax question answered
Tax advisor and Enrolled Agent
I've received a tax discovery letter from the city of Los
Hi, I've received a tax discovery letter from the city of Los Angeles for the year of 2015. I'm a resident of Los Angeles, but solely conduct business in Orange County. What is the proper way to reply, and what documents should I include?JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: I believe that's all the information
I am a tax professional (EA) and one of my clients sent me
I am a tax professional (EA) and one of my clients sent me the following article. He has an S Corp. Please review it and let me know your view on it. As far as I know, what he is proposing requires the client to pay 15.3 % of all ;profit to Social Security and Medicare. And for a one man S corp I see little advantage in what he is proposing. Am I missing something here? Also, last I knew S corps were way less audited than Sole Props. Not sure about partnerships. And I do not see why he would put things in a format that appears to give no SE tax shielding. Let me know your view. I am dealing with many one and two man S Corps and LLCs filing as S-Corps. Usually it is a step up from Sole Prop to shield profit from SE tax. Is there some advantage to what this guy says, or is he just ranting.LET'S PLEASE PUTS-CORPS COMPLETELY TO REST – DEAD & BURIED!We are in the 21st century, not the 1st century!Despite telling real estate investors and business owners to avoid S-corps in my courses, newsletters and other correspondence, I continue to get questions on using an S-corporation. The “S” in S-corp stands for SUCK! Here is why, which is not based on my opinion, but based on factual data…Major Tax Pitfall Of S-Corporations_More IRS audit profile and audited much more than partnerships. Very high IRS exposure (the most IRS litigated entity where the taxpayer almost always losses)._Highly Taxed W-2 Salaries With Substantial Employment Taxes – The net income of an S-corp is presently exempt from employment taxes*. But, based on numerous and continuing Tax Court cases, IRS requires the S-corp to pay you a significant amount (even 100%) of highly taxed W-2 salaries along with payroll taxes and filings. This amounts to thousands of dollars of “garbage” employment taxes out the window, reducing your business cash flow. (*Pending legislation would make S-corp net income totally subject to employment taxes)._Limits on fully deducting business tax losses because such losses are limited to the shareholder's basis in the S-corp's stock, which does not include third party debt. Termination of an S-corp status freezes the deductibility of unused carryover losses._S-corp distributions of tax-free borrowed money to shareholders could be taxable because of the above basis limitations. What a tax disaster!_Income and losses must be apportioned strictly in accordance with the exact number of shares owned, with no variations of special allocations to different shareholders._Limits on who can be a shareholder. S-corporations cannot have as shareholders – IRA's, corporations, partnerships and non-resident aliens._An S-corp can have only one class of stock ownership. Not being able to treat entity owners differently puts a limit on tax-reduction planning, such as with a special two-tier LLC structure (see below).What To Do > LLC-partnerships do not have the following disadvantages. Therefore if you have an S-corp, for your real estate investments or your small business other than real estate, get RID it.For real estate investments use a properly structured real estate LLC-Partnership per The LLC Master Machine Asset Protection System www.LLCProtectYou.comFor a small business other than real estate, use a properly structured two-tier business LLC-Partnership per The Business Owner's LLC- Protection System www.LLCBIZShield.comKnow Thy Money!SOME HARDCORE FACTS ABOUT MONEYFACT 1: NO body, but NO body. cares more about your money than YOU! And that is the way it should be as you are the owner. When I say “money” I do not just mean cash or bank accounts; there is also the equity in your home, real estate investments and other assets – IRA, 401(k), other retirement plans, stocks, bonds, mutual funds, insurance, annuities, etc. And your taxes (see below).FACT 2: Taxes = Money! Saving taxes is like making money. The wealthy know that taxes are a primary factor in determining whether you get rich or stay poor. Let's say, for example, you're able to save just $2,000 annually on your tax bill. (With a good tax plan it will be much higher). You invest the $2,000 annually in an IRA which earns a tax-free annual return of 10%. After 20 years, you'll have over $114,000! If you can save $10,000 annually on your tax bill and invest it in a Simple IRA for 20 years, you'll end up with almost $573,000! Over a half of million dollars!! (Imagine how much with Mike Warren note buying!) $5,000 in tax savings (which is found money) as a 10% down payment can allow you to buy an additional $50,000 in real estate! Assuming a 20% yearly return you would earn $10,000 which in 5 years would accumulate to $50,000! Get the point? Money makes money, but tax-free money makes a lot more!!
JD, MBA, CFP, CRPS
BUSINESS TAX QUESTION +++ - I have an LLC registered in CA.
BUSINESS TAX QUESTION +++- I have an LLC registered in CA.- I am the sole owner.- According to my accountant, the company equity is USD 335,000- Let's say the company makes a profit of USD 100,000As an individual person, can my LLC pay me USD 100,000 and I get it tax free by reducing the company equity to USD 225,000?Thanks in advance!