Showing 118 Results

What is the S-Corp 60/40 Rule?

One of the most important questions facing S Corp owners is how they should compensate themselves. Particularly, they have to determine how much they should pay themselves as a salary…
Best Practices June 18, 2024

Salary vs Distribution: How Should You Pay Yourself?

If you own and work within your S-Corp, you’re often faced with some serious decisions. One of the greatest is how much to pay yourself and how much you can…
Best Practices June 10, 2024

Stop Throwing Money Away: How a Reasonable Compensation Report Can Save You Thousands

S Corp owners who work in their business are required by the IRS to pay themselves a reasonable salary, or reasonable compensation, via W-2. The costs for non-compliance can be…
Tax Compliance June 6, 2024

What are the S Corp Payroll Requirements

It’s easy to understand payroll for regular S corp employees. You pay the prevailing wage or better, give regular wage increases to those key employees that set you apart, and…
Best Practices June 3, 2024

Cash vs Accrual Accounting Method for S Corps

After you’ve made up your mind about what type of entity you want for your business, you’ll need to set up your accounting system right away. The first decision you’ll…
Tax Compliance May 13, 2024

Dawn Brolin Reveals Her Must-Have Accounting Apps

Dawn Brolin, an experienced CPA with extensive experience navigating the challenges of owning an accounting firm (communicating with clients, getting documentation in a timely manner, knowing how to price your…
Best Practices May 1, 2024

S Corp Tax Deductions List

What is an S-Corp and How are Their Taxes Structured? An S-Corp is a type of corporate business entity where the tax structure regulations fall under Subchapter S of the…
Tax Planning April 23, 2024

Your Complete Guide to Pass-Through Entities

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

How to Convert an LLC into an S-Corps

LLC vs S-Corp. What's the Difference? An LLC is a very common entity choice for business owners who are just starting out. LLCs offer a number of benefits that make…
Entity Planning April 8, 2024

S Corp vs C Corp: Key Differences

When you’re starting a business, one of the most crucial decisions you’ll face is selecting the right business entity. The choice between an S Corporation (S Corp) and a C…
Entity Planning March 28, 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 Bookkeeping: Complete Guide

Declaring Your Business as an S-Corp Choosing an S-Corporation (S-Corp) structure for a business offers several benefits, which is why it’s one of the most popular entities for small business…
Best Practices March 13, 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

What is a Reasonable Salary for an S Corp Shareholder?

When you register your business as an S Corp, it comes with some outstanding tax benefits and protections for an owner, including reduced self-employment taxes, pass-through income, and shareholder liability…
Best Practices February 28, 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 TheTaxAdviser.com 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

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