Showing 109 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

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

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 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

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

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

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