An S Corporation is a pass-through entity. Corporations set up this way share the income, deductions, profits, and losses of a corporation with its owners. There is no federal corporate tax. Shareholders file their taxes including the profit or loss from the S Corp. This allows S Corps to avoid double taxation on the corporate income.
Also, unlike Sole Proprietors or Partnerships, S Corp Shareholders to do not pay Self Employment Tax (15%) on the income they receive from corporate profit. Therefore, the S Corp is generally the best choice for a small business. There are advantages to each different type of entity, however, and our EA/CPA/Tax Attorney team would be glad to advise you on what the pros and cons of each for your individual situation.
Profitable S Corporations generally have employees and payroll taxes need to be filed. In this case, the company is responsible for withholding federal income tax, Social Security, and Medicare taxes from paychecks and filings tax forms 940 and 941 in addition to the 1120S Income Tax Return for an S Corporation.
Many small businesses would benefit financially from being an S Corp but are worried about the extra paperwork. Proper bookkeeping, accounting, payroll, and filing the Payroll Tax forms 940 and 941, in addition to the corporate tax return 1120S can be daunting. Late filings and such are severely penalized.
Torchlight Tax & Accounting Las Vegas understands that you may not want to take on these administrative burdens. In most cases, we can set up a package service for S Corp, Bookkeeping, Accounting, Payroll, and corporate tax filings that are a fraction of the saving you get. Moreover, with these issues off your lines, you can concentrate on increasing your profit, which will be facilitated by knowing accurately what your profit is, as your books are being kept up.
If you are not already an S Corporation, becoming one can result in a substantial tax savings.
If you are already an LLC or Corporation, we may be able to save you substantial tax dollars by doing a late election to the IRS and getting it approved.
In any event, we can assist you in saving tax dollars by making sure your entity selection is correct and filing your taxes expertly to legally save your tax dollars.
For help in filing your corporate taxes, or to see if Torchlight Tax and Accounting Las Vegas Central is a good fit for you, contact us at 1-877-758-7797 or 702-463-1818 or email us at info@TorchlightTax.com. We can transfer your call to a branch office near you or help you directly from our central office. Free consultations are available.
Many people do not know how a professional tax and accounting firm differs from a bookkeeper or tax preparer. The main difference when working with a professional tax and accounting firm, such as Torchlight Tax, is that our firm utilizes the services of CPAs, EAs, and Attorneys who are distinguished from bookkeepers and other tax preparers by stringent qualification and licensing requirements. Our entire team has a purpose to legally save your tax dollars and to make taxes as painless as possible. This means we take your calls and respond to your concerns. If you receive a threatening IRS call or Notice or are worried about some tax question, we are here for year round taking your calls and responding to your emails.
Whether you are filing personal, small business, or corporate taxes, or negotiating IRS tax debt, if you are not already using a professional Tax, Accounting, and IRS Representation firm, you most likely have missed out on major tax benefits. This is because a professional tax and accounting firm utilizes licensed professionals such as Certified Public Accountants (CPAs), EAs and Attorneys, who can not only advise individuals on personal financial matters but who can also advise businesses and corporations of all sizes and types. Tax laws are complicated, and no one knows everything. Torchlight Tax is a team and any one of our tax pros can call on other EAs, CPAs, and Tax Attorneys in the team who may have specialist knowledge in a specific area of tax.
When doing current taxes, we often come across missed tax savings from prior years. When this happens, the Internal Revenue Service allows you to amend your taxes and lower your tax liability. Whether you or your prior tax preparer missed a W-2 or 1099, a revised 1099. Large charitable donations, or made some other error, amending your tax return can help you recover the money you are rightfully owed. When we find this situation, we will advise you on potential savings and amend the previously filed tax return.
Sometimes, there may be a situation where a tax return could be amended, but it is too late to receive any benefit, or maybe you made an error that was missed by the IRS that would have increased your tax liability. In some cases, it is prudent to file an amended return. But if it is not necessary and will not save you any money or decrease your risk, we will tell you not to bother. It is silly to amend a return to no advantage, which is too old for the IRS to audit. Some firms might file a bunch of unnecessary tax returns and charge a fee. Sometimes a taxpayer himself might increase his tax liability by filing an unnecessary amendment that increases his tax liability. We will not do this.
Amending a tax return requires more professional acumen then doing it right in the first place. At Torchlight Tax, we do file the tax return correctly the first time, and we will happily amend your tax return, but only if it actually is to your benefit. If you think you might need to amend tax returns, contact Torchlight Tax for a free consultation.