C-corporation Vs. S-corporation

S-corporation and LLCs are pass through entities. Income are passed to the individual level and calculated at tax bracket as high as 39%. If the business is low profit margin, C-corporation’s low tax bracket may make sense.
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S-corporation shareholder limitation

S-corporation is limited to only 100 shareholders and no foreign shareholders. Only individuals, estates, certain trusts and certain charities may be shareholders.
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Retirement Plan

Solo 401K, SEP IRA matching deadline is April 15th or the tax filing date including extension. Regular individual IRA is April 15th and...
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IRS Issue Number: IR-2015-60

“Webinar for Small Business: Ten Things to Ask Your Accountant” WASHINGTON — The Internal Revenue Service will hold a free webinar next week designed to offer tips to taxpayers, especially small business owners, on working  effectively with a paid tax preparer. The webinar titled, Ten Things to Ask Your Accountant, will take place on Tuesday, March 31 from 2 p.m. to 2:45 p.m. Eastern Time.  It will discuss three important questions to ask before hiring a tax professional. The webinar will also describe seven common tax provisions that often apply to small business owners. To register or access archived versions of past webinars, visit the Webinars for Small Businesses page on...
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Statistics of Income Bulletin – Partnership

The Internal Revenue Service today announced that the Winter 2015 issue of the Statistics of Income Bulletin is now available on IRS.gov. Partnership Returns 2012 – Partnerships filed more than 3 million tax returns for the year, representing more than 25 million partners. The real estate and leasing sector contained nearly half of all partnerships and just over a quarter of all partners. domestic limited liability companies made up the majority of all partnerships, surpassing all other entities for the 11th consecutive year. Total receipts for all partnerships increased more than 9 percent over 2011 to $6.6 trillion....
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ISO, ESPP Different Accounting and Tax Treatment

Startup companies always find it confusion when deciding with Incentive Stock Options (ISOs), Employee Stock Purchase Plans (ESPPs). Also, Form 3921 and Form 3922 are for different type of stock options. Expense deduction for Startup Company and in recognition for employee receiving stocks are also treated differently for accounting and tax purpose.
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