Archive for the ‘ S Corporations ’ Category
Update Your W-4
With the 2009 tax season coming to an end, it’s a good time to update your IRS Form W-4 on file with your employer (or yourself, if you are an S corporation owner). Form W-4 tells your employer who much to withhold from your paychecks for income taxes. For most of us who are paid [...]
10 Things About Choosing the Right Business Entity
1. Human Error. Carrying on business without a business entity means that each of the owners is 100% personally responsible for all of the business’s liabilities. This isn’t good. A business entity (corporation, limited liability company (LLC), or limited liability partnership (LLP)) protects the owners from personal liabilities, except professional liabilities and personal wrongdoing. 2. Pass the [...]
A Break for (Some) S Corporations
Corporations that elected S corporation status during the years 2000 through 2003 got a small break in the American Recovery and Reinvestment Act enacted this year. For these S corporations, the built-in gain recognition period was shortened from 10 years to 7 years. This means that now may be a good time to sell built-in [...]
Deduction for Charitable Contributions by S Corporation
When a charitable contribution is made by an S corporation, the right to claim the charitable deduction passes through to the S corporation shareholders. This is significant because charitable deductions claimed by a corporation (that is, a C corporation) is limited to 10% of their annual net income (with carryover for up to 5 years). [...]