If you were to loan me $20k today, would you insist on loan documents, regular payments, and interest? Of course you would! Such requirements and documentation would seem to be common sense, so why do many shareholders fail treat the loans to their S-Corporations the same way?
An S-Corporation is a separate legal entity, and any [...]
Posts Tagged ‘S-Corporation’
Loans from S-Corporation Shareholders
Posted in S-Corporations, tagged distributions, documentation of shareholder loans, interest on loans from S-Corporation shareholders, loans from shareholder, payment of shareholder expenses, S-Corporation, S-Corporation shareholder on May 18, 2009 | 14 Comments »
LLC vs. S-Corporation, Round 1
Posted in Partnerships and LLCs, S-Corporations, Sole Proprietorships/SMLLCs, tagged entity selections, Limited Liability Company, LLC, Payroll Tax, real estate businesses, real estate rentals, S-Corporation, self-employment tax, Single-Member LLC, single-owner business, SMLLC, tax savings on May 1, 2009 | 4 Comments »
When setting up a business and deciding on entity type, most people are looking for 1) liability protection and 2) tax savings – specifically lowering self-employment tax liability. For small businesses, the two best options are the LLC or the S-Corporation, and many tax or legal professionals seem to advocate for one team or the [...]
S-Corporation Failure to File Penalty
Posted in S-Corporations, Tax Acts and New Tax Laws, tagged $85 late filing penalty, 1120S, AMT Relief Act of 2007, failure to file penalties, HR4351, penalty abatement, S-Corporation, s-corporation late filing penalty, S-Corporation penalties on January 22, 2009 | 12 Comments »
Back in December of 2007, the 110th Congress passed HR4351 or the “AMT Relief Act of 2007″, which was the aftermath of the showdown regarding alternative minimum tax that I posted about at the time. The bill had a lot of small print regarding new revenue raisers – one in particular: Sec 223 regarding failure [...]
Reasonable Wage For S-Corporation Shareholders
Posted in S-Corporations, Tax Planning, tagged distributions, IRS audit, Oregon unemployment tax audit, payroll, Payroll Tax, reasonable wage, S-Corporation, S-Corporation shareholder wages, year-end planning on October 9, 2008 | 3 Comments »
For those of you with S-Corporations, now is the time of year to look at your wage for the year-to-date as well as start the planning for 2009. A “reasonable wage” needs to be paid to more than 2% shareholders in S-Corporation, and there is still time to make changes without incurring payroll tax penalties.
This [...]
PDXCPA Twitter Tax Updates
- Worker, Homeownership, and Business Assistance Act of 2009 - great CCH summary now available: http://bit.ly/3Sf5O3 1 week ago
- Great new tax question and answer site - http://www.taxqueries.com/ 1 month ago
- IRS faces challenge on sole-proprietor expense deductions http://sbne.ws/r/32Y7 1 month ago
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Recent Posts
- Worker, Homeownership, and Business Assistance Act of 2009
- New Tax Q&A Website – TaxQueries.com
- Update on S-Corporation Failure to File Penalty
- Office In Home and Mileage Deductions
- Travel Expenses and Business Planning Trips
- Oregon Income Tax Increases – Sales Tax in Disguise?
- Single Member LLC Owner Liable for Unpaid Employer Payroll Tax
- Oregon 2009 Individual Income Tax Increases
- Oregon Business Tax Increase Update
- Loans from S-Corporation Shareholders
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