c corporations Archives

If your business has co-owners, you probably need a buy-sell agreement

Jul 18, 2024 | Small Business

For most business co-owners, the value of their business shares comprises a big percentage of their estates. Having a buy-sell agreement protects co-owners and their heirs and helps avoid hassles with the IRS.

Year-end tax tip to help your business qualify for the QBI deduction

Dec 28, 2020 | Small Business

If you own a business, you may wonder if you’re eligible to take the qualified business income (QBI) deduction. Sometimes this is referred to as the pass-through deduction or the Section 199A deduction. The QBI deduction: Is available to owners of sole...

How business owners may be able to reduce tax by using an S corporation

Sep 7, 2020 | Small Business

Do you conduct your business as a sole proprietorship or as a wholly-owned limited liability company (LLC)? If so, you’re subject to both income tax and self-employment tax. There may be a way to cut your tax bill by using an S corporation. Self-employment tax basics...

Good records are the key to tax deductions under IRS audit

Jul 6, 2020 | Individuals, Small Business

If you operate a small business, or you’re starting a new one, you probably know you need to keep records of your income and expenses. In particular, you should carefully record your expenses in order to claim the full amount of the tax deductions to which you’re...

Does your small business have an emergency succession plan?

Jun 22, 2020 | Small Business

For business owners, succession planning is ideally a long-term project. You want to begin laying out a smooth ownership transition, and perhaps grooming a successor, years in advance. And you shouldn’t officially hand over the reins until many minute details have...

How’s your buy-sell agreement doing these days?

Jun 15, 2020 | Small Business

Most companies wouldn’t go into business without some basic types of insurance in place, such as property coverage and liability coverage. For a company with more than one owner, there’s an additional type of risk-management arrangement that needs to be established: a...

Determine a reasonable salary for a corporate business owner

Mar 16, 2020 | Small Business

If you’re the owner of an incorporated business, you probably know that there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason is simple. A corporation can deduct the salaries and bonuses that it pays...

Should you elect S corp status for your small business?

Aug 26, 2019 | Small Business

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...

Which entity is best for your new or existing small business?

Jul 15, 2019 | Small Business

The Tax Cuts and Jobs Act (TCJA) has changed the landscape for business taxpayers. That’s because the law introduced a flat 21% federal income tax rate for C corporations. Under prior law, profitable C corporations paid up to 35%. The TCJA also cut individual income...

Fundamental tax truths for C corporations

Feb 18, 2019 | Small Business

The flat 21% federal income tax rate for C corporations under the Tax Cuts and Jobs Act (TCJA) has been great news for these entities and their owners. But some fundamental tax truths for C corporations largely remain the same: Double Taxation Double taxation occurs...

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