29th July 2008
Introduction - s vs c corp
Self-Employment Taxes - C corporation vs S corporation
One of the main reasons people set up an S corporation or make the S corp tax election for their LLC is to save self-employment taxes.
The tax rate is...
29th July 2008
Introduction
Tax Treatment
LLCs enjoy very favourable tax treatment. They don’t have their own set of tax rules and there’s no such thing as an LLC tax return. What makes them special is that members can choose how the business is ...
29th July 2008
Introduction - S corp vs C corp
The difference between C corporations and all the other entities is that C corps pay their own tax – they are not pass-through entities.
The corporation pays corporate income tax on its profits at the follo...
22nd July 2008
Introduction
LLC stands for Limited Liability Company and the owners are called members.
The LLC is a relatively new type of business structure. It was only in 1996 that most states had recognized them.
LLCs have become extremely popular b...
22nd July 2008
Introduction
There are two types of corporations:
•S corporations, and
•C corporations
We will take a close look at the drawbacks and S corporation advantages, also known as S corps.
S corps offer limited liability and simple tax t...
22nd July 2008
The recent Budget provided more details on the new tax relief that will now apply for disposals of businesses and certain shares after 6 April 2008. It's a partial climbdown on the flat 18% rate of capital gains tax that has been introduced, but ignoring ...
02nd July 2008
A C Corporation is the only business structure that is never a pass-through entity.
The difference between C corporations and all the others is that c corporations are completely separate C Corp tax entities. This means you don’t pay the business taxes...
02nd July 2008
Many businesses start life as an s-corp and when profitable become c corps to benefit from income splitting and fringe benefits. Alternatively they form an LLC which is simpler to form and operate but offers the same personal liability protection.
S co...
02nd July 2008
Both sole proprietors and partnerships can convert to a limited liability company. Owners of LLCs are called members, not shareholders.
Until recently some states did not allow one-member LLCs . This is no longer the case. One-member LLCs are allowed i...
06th June 2008
In 1997 new tax rules for home sellers were introduced contained in section 121 of the tax code. The new tax changes were:
1. If you are not married, when you sell your home the first $250,000 of your profits are tax free.
2. If an unmarried couple j...
06th June 2008
One of the major dilemmas that both married and unmarried home owners face is what happens to the $250/500k capital gains tax exclusion if you sell your home after owning it or living in it for less than two years? And what happens if you’ve sold anothe...
06th June 2008
One of the most powerful ways to minimise your tax bill is by ensuring that your properties qualify for the tax-free exclusion. Used correctly, this exclusion can mean that you pay very little tax on gains of up to $500,000 – as long as the property in...
