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Posts Tagged ‘Subchapter S Election’
6 Reasons Small Business Owners Should Meet With Their CPA Before Year-End
There are a host of reasons small business owners should meet with their CPA. Here are 6 of them:
1) Method of Accounting
Smaller business can usually file their tax returns on the cash basis of accounting. The taxable income is based on the revenue received less the deductible expenses. Larger companies must prepare their tax return using the accrual basis of accounting. The accrual basis matches the … Continue reading »
The Difference Between a C Corporation and a Subchapter S Corporation
Business owners can maintain their corporation as a regular or "C" Corporation. Alternatively, if they are eligible, they may want to make a Subchapter S Election. Both are treated as separate legal entities. Here are the differences however:
C Corporation
While a C Corporation is a separate legal entity, it is also a separate taxable entity. The corporation will pay income taxes on any … Continue reading »
The Biggest Loser….The Self-Employed in Connecticut
The Biggest Loser is a TV show where contestants attempt to lose the most weight for cash prizes. Full Disclosure: I don't watch the show and I have only seen short clips of it. I don't proclaim to fully understand the show. It appears to me however the biggest loser has nothing to do with losing weight. It's the self-employed in Connecticut. They … Continue reading »
The Difference Between an LLC and a Subchapter S Corporation
Startup businesses are often considering either a Limited Liability Company ("LLC") or a Subchapter S Corporation. Here are the differences:
Why a Growing Business Should Elect Subchapter S Filing Status
The primary reason to make the Subchapter S filing status election is to have a single federal income tax when the business is eventually sold.
If the corporation is not an S corporation and the company assets are sold, there will be a double tax on sale. The first tax will be at the corporation level. A regular or C corporation will pay a tax on the gain on the sale of its assets. … Continue reading »
