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What Is a Pass-Through Entity?

New businesses are formed as pass-through entities to benefit from favorable tax treatment, and some forms of pass-through entities also offer enhanced protections in the form of limited liability for…
Entity Planning April 17, 2024

A Guide to Salary Benchmarking

A company with employees often realizes salaries as the most significant operating expense on the income statement. It is also a complex equation and balancing act, keeping salaries low enough…
Best Practices March 20, 2024

S Corp Salary 50/50 Rule: A Complete Guide

Many S corp owners working in their business question how much they should pay themselves as an employee of the company before taking their distributions. Unfortunately, many business owners and…
Entity Planning March 8, 2024

How Compensatory Intent Affects Compensation Deductions

For a corporation to deduct a payment made to a shareholder/employee as compensation, compensatory intent must exist.  Originally published in on December 7, 2023. Copyright: AICPA.  It is well known…
Business Valuations February 22, 2024

Paying for Personal Guaranties of Company Debts

Originally published in The Tax Adviser, September 2022. Copyright: AICPA It is common for business owners to personally guarantee company debts. This is a valuable service since many private companies…
Business Valuations February 21, 2024

How S Corp Shareholder Health Insurance Works

Forming a company as an S corp has some outstanding tax advantages for business owners. No corporate income taxes are paid, and considerable amounts of money may be saved on…
Best Practices February 15, 2024

The Role of RCReports in Tax Planning: Tools and Strategies for Success

Tax planning is an essential aspect of financial management for businesses and individuals. Properly managing your tax obligations can lead to significant savings and financial security. However, with a complex…
Tax Planning, Entity Planning January 16, 2024

Mastering the Art of Reasonable Compensation Analysis for Business Tax Planning

When it comes to navigating the complex world of business tax planning, one critical element often overlooked or misunderstood is "reasonable compensation analysis." This process is an essential tool for…
Tax Planning, Entity Planning January 9, 2024

Choosing the Right Entity: A Comprehensive Guide to Entity Selection in Tax Planning

Selecting the right business entity is a critical decision for entrepreneurs and business owners. This choice can significantly impact their tax liability, legal obligations, and overall financial success; therefore, this…
Entity Planning January 2, 2024

What are the Different Types of Business Entities?

When starting a new business, it is critical to contemplate what form the company will take. The legal business form determines how it operates, how it is taxed, and who…
Entity Planning December 10, 2023

5 Reasons Why Small Businesses Get Audited

For individual taxpayers and small business owners alike, the idea of an IRS audit can strike fear into one's heart. And many experts agree that the frequency of audits for…
IRS News, Updates & Guidance December 5, 2023

How to Pay Yourself as an S Corp

S Corporations are unique in that they offer both the limited liability benefits of a corporation and the pass-through taxation of a partnership. In an S Corp, paying yourself generally…
Tax Compliance, Tax Planning November 29, 2023

Reasonable Compensation Horror Story: A Realtor Haunted By Missing Reasonable Compensation Calculations and Payroll Non-Compliance

As many of us in the tax and accounting profession know, there’s rarely much good that can come out of the IRS flagging a business owner’s personal tax return for…
Court Cases & True Stories October 31, 2023

Rising and Falling Revenue: The Keys to Reasonable Compensation Calculations for Real Estate Agents

You may think it’s a challenge to calculate reasonable compensation for real estate agents due to fluctuations in the economy.

Best Practices October 23, 2023

Reasonable Compensation for Gig Workers

These clients are aggressive in expanding their businesses, and developing multiple streams of revenue, as such, they need to be sure to not only pay appropriate income taxes, but also to pay adequate payroll taxes, too.

Best Practices October 23, 2023

5 Major Money Leaks: How to Plug the Profit Drain and Maximize the Revenue Potential at Your Firm

Do you feel overworked and underpaid, and no matter how many hours you work, you still can’t get ahead? Do you struggle to make and keep boundaries with clients, or…
Best Practices October 20, 2023

Learn why RCReports is the #1 reasonable compensation tool for accountants.

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