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Recent Corporate Tax questions

This is for someone familiar with Tennessee state and fed

This is for someone familiar with Tennessee state and fed taxation.I am an EA and have a potential client in Tennessee. The potential client thinks that there is no advantage in making his partnership/LLC into an S Corp as Tennessee has a special excise tax on corporations. I reviewed the data briefly, and it seems like he is mistaken. Any partnership, LLC, or S Corp will pay no state corporate income tax as the tax will flow through to his personal return automatically. If he takes part of his income as a wage that is fair and reasonable for his field, and is an S-Corp (or an LLC that is elected to be treated as an S Corp), his dividends will be shielded from Soc Sec and medicare taxes. Just wanted to confirm my understanding, and to double check if there is any peculiarity about Tennessee taxes that negates this.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,022 satisfied customers
I have a corporation and my business is an auto body

I have a corporation and my business is an auto body collision center. I work with insurances, dealerships and individuals. This week one of my clients (he is the owner of a dealership) we get repeat business from him. He gave me a W9 form for me to fill out and return it back to him for tax purposes. He said since we provided more than 1,000 in services to him, he will report it on his taxes. I was a little surprised because I have about 7 dealerships I work with and nobody has ever tried to report my services that way. I mean I am not their subcontractor. My company repairs their cars so they can sell them but they are paying for a service and we do not have a subcontractor contract so I would assume my services are an expense which they can report since we provide invoice and receipt when the work is completed. I report all my revenue to the IRS at the end of the year but The fact that this client is trying to report my company as a subcontractor of his makes me wonder if that is right. Im wondering why he is trying to report it that way instead of reporting it as an expense?Can you please help?Thanks

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Barbara

Enrolled Agent, Paralegal

5,714 satisfied customers
Dear Pearl, and I have a C-Corp for imports and exports of

Dear Pearl, I am Brazilian and I have a C-Corp for imports and exports of goods in Florida. During the last 8 years, the corp accumulated 100k in profits. Can I use this accumulated earnings (cash in the account) to buy a real estate property as a rental investment under the company name? My current accountant told me I cannot buy a house for rental because it is different from the original company core activity. he says I must tranfer the money to my personal account, pay around 20% personal income tax, form an LLC to send the money. What can you recommend?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,022 satisfied customers
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!

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Richard

Owner

Doctoral Degree

47,942 satisfied customers
G. Again, thanks with that question. Thing is that I have

For Stephen G.Hi,Again, thanks with that question.Thing is that I have sustained some real trying time dealing with my Payroll. Nothing that should be done to an employee trying to stand up for not being thrown under the bus.So I am really looking for a way to expose either the tax error that they incurred, or if they have legally managed to correct it --through that loophole that recommended (to my benefit too, but with a undue price tag) -- to find an avenue to expose the deplorable dealing with corporate tax errors to tremendous detriment of employee relations.So I was wondering if you knew of a regulator, or professional body, or publications, which would be in theory be interested in learning how to avoid cases like this, if not prosecute, where I would make an anonymous complaint, ideally,Still please let me know.I would be willing to talk even with a reporter who might see a material for a column or an article.I really want to restore some balance in the Universe.Thanks!(If there is anything you can think of.)

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,294 satisfied customers
10 investors plan to set up company. Now each person will

10 investors plan to set up company. Now each person will invest in stocks for $50,000.00 each. First we need approval from PA state regarding some medical license before operation.If not approved, we have to close the corporation and get the invested money to investors. Investors are very worried about how to get money back without tax if we liquidate the company before operation.1) If we liquidate the company before operation, what kind of corporation type is good for investor regarding distribution ?2) If we liquidate the company before operation, how can the company distribute the invested money to investors without tax? thanks

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taxmanrog

Master's Degree

926 satisfied customers
If a US company makes a sale in Belgium, how does it avoid

If a US company makes a sale in Belgium, how does it avoid double taxation (i.e. in Belgium and the US)?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: That'JA: Is there anything else important you think the Accountant should know?Customer: That's all I know right now.

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Barbara

Enrolled Agent, Paralegal

5,714 satisfied customers
I have a question about filing a return. Here is the

Hello, I have a question about filing a return. Here is the scenario:JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: Company A is a C-Corp with a fiscal year end of 08/31. Company B is a single member LLC whose sole member is Company A. How should I file this return. If Company B's sole member were an individual, then it would be a disregarded entity, and would go on the individual's schedule C. Since there is no schedule C on a corporate tax return, how do I account for the income and expense? Or do I file a separate return for the LLC? I am confused.JA: Is there anything else the Accountant should be aware of? What confuses you?Customer: Thanks,

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,022 satisfied customers
My wife filed separate but married in 2015 because I failed

My wife filed separate but married in 2015 because I failed to pay taxes in 2015. She was in charge of our taxes for the last year since we started a new business in 2015. But she filed all my individual expenses as business expenses. Under the innocent spouse relief act do I have any retributionJA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: I now owe 23k in back taxes

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Anne

Master Tax Preparer

3,198 satisfied customers
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