The latest stimulus bill gives businesses the ability to deduct expenses paid with forgiven PPP proceeds. This is good news, but is not what this post is about. The stimulus bill says deductions are allowed and “no basis increase shall be denied.” It’s the “basis” piece I want to address here. This seems like an […]
This blog post is specific to Iowa. SUTA = state unemployment tax. In Iowa, when a 1-person LLC makes an election to be taxed as an S-corporation and pay the owner a salary, the salary is NOT automatically subject to state unemployment tax. Instead, the owner has the option of making themselves subject to unemployment tax. […]
I say it depends on your cash flow and whether or not you can afford to pay yourself a reasonable salary for the work you’re doing.
You should look at forming an S-corp when your net income from the business starts to approach the amount of a “reasonable salary” for the work you do.
A C-corporation is a tax term referring to one of two ways a corporation can be taxed.
This post will attempt to answer answer two questions: what is a B-corp, and how are they taxed.
Can a corporation use a spreadsheet instead of a traditional general ledger to keep the corporate books? There are certainly corporations that think they can. I know many of my tax and accounting brethren are shouting “NO!” In response to this question. My answer is more on the fence. It depends on what your corporation is up to.
Must an S-corporation pay salary if the owner takes no money out of the business? The short answer is no.
I’m encountering more and more sole proprietors who want to form S-corps so they can save on taxes. It’s a good strategy — if you know what you’re getting into. The problem I encounter with these clients is: almost all of them engage in mystical thinking about the wonders of S-corps.
In tax terminology, a pass-through entity is a business where the end results of operations “pass through” to the owners and are reported on the owners’ personal tax returns.