Tax Benefits of A ?C? Corporation - Funding
If you are going to form a corporation, you might be surprised to learn a "C" corporation comes with a lot of tax benefits. While this article isn't intended to replace the advice of a good tax professional, it may serve to open your eyes to the value of a "C" corporation."C" CorporationThe "C" in C corporation has a few legal ramifications, but it is primary a designation for tax purposes. Put in layman's terms, the designation simply means the corporation will act as its own tax entity. In contrast, an "S" corporation acts as a pass through tax entity, pushing its financials down to the shareholder who report the information on their personal tax returns.The Internet Revenue Code sets out the law on tax and it contains a few juicy provisions for corporations. Lets take a look at one of the advantages.
IncorporatingWhen a party transfers something of value to another party, the IRS gets interested. It views the receipt of something of value as a taxable event. In simply terms, if you pay me for forming a corporation, I have to report and pay taxes on the money. Since a C Corporation is a stand alone tax entity, what happens when you purchase stock?You have made arrangements to form a "C" corporation. Now you have to buy stock in it to become a shareholder.
If you exchange money or property for the shares, the IRS takes the position no taxable event occurred. In essence, this means the corporation will not have to report you contribution as part of its revenues. If the money isn't considered a part of the corporate revenues, no tax must be paid on it. The exact rules for funding a corporation are a bit more complex. With any tax issue, you can expect there to be roughly fifty exceptions and qualifiers.
For instance, if you were to exchange services instead of money for the stock, the above example would not apply. Make sure you speak with a tax professional to handle your particular situation correctly. In ClosingMany people choose a business entity without considering all relevant aspects. Taxes definitely constitute one of these aspects. Make sure you look into them prior to making your decision..
Richard Chapo is with http://www.sandiegobusinesslawfirm.com - providing legal services to San Diego businesses.Internal Revenue Service Continues to See E-file Grow in 2006: New Resources Help More Tax Payers Get Online
San Francisco, CA (ContentDesk) February 15, 2006 -- The Internal Revenue Service has recently announced that it is rapidly expanding e-filing efforts.
Last year, more than half of over 135 million individual tax returns were filed with efile.
The primary benefit of efile is that individuals see their tax refunds in their bank accounts on average more than twice as fast as with traditional paper methods. Also, with the Internal Revenue Service ceasing its file-by-phone Telefile service this past August, even more tax payers are encouraged to use online tax preparation methods(http://www.irs.com/efile/providers.htm).With the expansion of e-filing, independent online tax resource, IRS.com, has also expanded its efforts to guide both individual and business taxpayers to the tax information and help available across the Internet.
There are many new issues that tax payers have to deal with in...
Tax help > Internal Revenue Service Continues to See E-file Grow in 2006: New Resources Help More Tax Payers Get Online
Tax Benefits of A ?C? Corporation - Funding
If you are going to form a corporation, you might be surprised to learn a "C" corporation comes with a lot of tax benefits. While this article isn't intended to replace the advice of a good tax professional, it may serve to open your eyes to the value of a "C" corporation."C" CorporationThe "C" in C corporation has a few legal ramifications, but it is primary a designation for tax purposes. Put in layman's terms, the designation simply means the corporation will act as its own tax entity. In contrast, an "S" corporation acts as a pass through tax entity, pushing its financials down to the shareholder who report the information on their personal tax returns.The Internet Revenue Code sets out the law on tax and it contains a few juicy provisions for corporations. Lets take a look at one of the advantages.
IncorporatingWhen a party transfers something of value to another party, the IRS gets interested. It views the receipt of something of value as a taxable event. In simply terms,...
Tax Benefits of A ?C? Corporation - Funding
Tax help > Tax Benefits of A ?C? Corporation - Funding
Offer in Compromise Program and JK Harris Help Family Gain New Start
NORTH CHARLESTON, SC (ContentDesk) October 27, 2004 -- Samuel Mathes had worked hard to build a successful business and a comfortable life for his family in Iowa until he found himself in the middle of a financial nightmare."Our world of financial success was turned upside down very quickly with a series of events we could not control," said Mathes.
"I saw an ad in the newspaper from JK Harris & Company ? ?they could help'.
I was always treated with respect, and my issues were handled promptly and professionally.
I always knew I had wise backing."Mathes' misfortune started when the Iowa Department of Natural Resources told him that his wastewater lagoon in Chariton, Iowa, did not meet standards and that he could build a new one at a cost of $600,000 or he could tie into the city sewer system.
He chose to tie into the Chariton system, but the cost was $350,000.Then his top customer substantially cut the mileage rate they were paying to Mathes' company,...
Tax help > Offer in Compromise Program and JK Harris Help Family Gain New Start
IRS Fails as a Tax Adviser
The Internal Revenue Service conducted a study of the quality of telephone advice it provides to taxpayers. It found that only 27% of callers actually received complete answers to their questions. Almost three quarters of callers were denied service, told to call back later, or had an excessive waiting time and simple hung up before speaking with a representative. Of those few callers that received complete answers, the answers given by IRS representatives to tax law questions were correct only 50% of the time. Taxpayers are often surprised to learn that they are not protected by relying on advise from an IRS employee.
Only a private tax adviser can warranty the reliability of their advice, and the warranty is limited to the specific remedy offered by the adviser. This might be representation at no additional charge to resolve an issue in dispute or a return of the fee. A taxpayer can rarely be protected from tax liability due to incorrect advice..
IRS Fails as a Tax Adviser
Tax help > IRS Fails as a Tax Adviser
Becky Schmitz Receives Award as Top Tax Problem Solver
Billings, MT (ContentDesk) June 15, 2006 -- The American Society of Tax Problem Solvers (ASTPS) is pleased to announce Becky Schmitz the recipient of the coveted ASTPS Top Practitioner Spring 2006 Award.The ASTPS Top Practitioner Award recognizes distinguished members for their exemplary professional accomplishments, dedication, and contributions to the organization and the profession.Becky submitted her first Tax Problem Resolution offer in 1994. For the past seven years she has devoted a substantial portion of her practice to tax problem resolution as a Certified Tax Resolution Specialist. She employs a staff of four in her firm, Cent$able Accounting, Inc., "The Tax Problem Solvers." She and her staff provide the customary array of tax preparation and tax planning services for individuals and businesses, in addition to Tax Problem Resolution.
The firm's website has a page - http://www.centsableaccounting.com/tax-services/...
Tax help > Becky Schmitz Receives Award as Top Tax Problem Solver