Various types of legal entities can pose unique challenges to their owners:
- C-CORP - Personal service corporation, accumulated earnings tax & personal holding company rules, consolidation & expanded affiliated group requirements, estimated tax requirements, compensation issues, officer life insurance, special deductions, charitable contribution opportunities & limitations, etc.
- S-CORP - Only one class of stock allowed, increased IRS scrutiny re: "reasonable compensation" vs. distributions, taxable shareholder fringe benefits, basis for loss and distributions, distribution "true-up's" and avoiding disproportionate distributions, etc.
- PARTNERSHIP - GP, LP, & LLC self-employment income & "guaranteed payments", tax matters partners and member-managers, capital account maintenance rules, special allocations of income & deductions, basis adjustments, related party & passive activity loss rules, portfolio vs. rental vs. ordinary income, etc.
- ESTATE & TRUST - Fiduciary returns - accounting income vs. distributable net income (DNI), administration expenses, Commissioner of Accounts filings, executor/trustee compensation, simple vs. complex trusts, benficiaries' pass-through income & deductions, distributions, treatment of capital gains, testamentary, marital & credit shelter trusts, charitable trusts, etc.
Whatever the choice of entity type, most businesses face a bewildering array of capitalization, depreciation, amortization and Section 179 expense choices, "listed property" and personal auto use rules, business license & personal property tax, nexus and sales tax classification issues, "employee vs. contractor" rules, employee benefit & retirement plan choices, and Alternative Minimum Tax issues.
Estates & trusts face other choices - revocable vs. irrevocable trusts, character of pass-through income, allocation of expenses, mandatory vs. discretionary distributions, fiduciary filings, etc.
All of which require accurate record-keeping, and I can help there, too.
I assist business owners and fiduciaries with coordinated planning to optimize results, maximize tax savings, and to avoid tax & financial pitfalls.
I'm always ready to discuss your particular needs and concerns - just give me a call. I'm here to help!