Best Certified Public Accountants in Arvada, CO

Qualifying businesses that have fewer than 100 shareholders who are all domestic (US) individuals (not businesses) with the same type of ownership and are not otherwise precluded from electing S-Corporation status can file Form 2553 timely with the IRS to make the election.

The S-Corporation and the Partnership are both business structures that pass income through to the owners. Income from a Partnership could be more expensive to the owners if that income is subject to self-employment taxes. Income from an S-Corporation could be less expensive to the owners if that income is not subject to self-employment income, however, the S-Corporation is required to pay a salary to the shareholders so it could have more compliance (paperwork).

To calculate your sales price be sure to evaluate your overall costs. These include indirect and direct expenses such as materials, labor, insurance, taxes, travel, supplies and occupancy.

Tax planning helps to avoid surprises. Taking the time to review your paystub or your small business profit and loss mid-year will help to eliminate large tax bills or refunds when you file.

Yes, you get a tax deduction when you donate limited amounts of your IRA if you are over age 72 and have the donation paid directly from your bank to the charitable organization. See our blog post on this topic.