Whyte CPA helps setup & maximize S-Corps for small business
One of the best ways small business can protect themselves and possibly save a great deal in taxes, is to convert to be taxed as an S-Corporation.
We help businesses convert to an S-Corp, and then we guide them to get the most tax savings & benefit from them.
We'll perform a deep dive on your taxes to discover if an S-Corp is right for you.
If an S-Corp is a good idea, Whyte CPA will do all the paperwork and help you get the most benefit possible
We'll do all the bookkeeping, tax and payroll required to run your S-Corp, you just enjoy the savings!
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We prepare and file business taxes with a focus on identifying ways to keep more of what you earn.
Your financials will be setup perfectly, and we'll keep them up to date with prompt bookkeeping services.
We'll finish the accounting in a fraction of the time it takes your team, and we'll save you from hiring more employees than necessary.
Executive level financial experience & knowledge is difficult for most entrepreneurs, we'll serve as your CFO.
Utilizing an S-Corp can often help you mitigate
For many business owners, utilizing and maximizing an S-Corporation can help you mitigate your social security and medicare taxes in a huge way.
We can help you know if an S-Corp is right for you.
Not only will we analyze if an S-Corp is right for your business, but we'll also help you convert to an S-Corp and run it excellently.
S-Corps can be great, but they need to be operated with wisdom as to obey the rules - and that's what we're all about with our outsourced accounting servce.
In order to be taxed as an S-Corp rather than a sole proprietorship, a business needs to submit Form 2553, titled "Election by a Small Business Corporation," to the IRS. This form should be filed during the tax year when the business desires to be taxed as an S-Corp. All corporation shareholders must sign the form, and it must reach the IRS within 2 months and 15 days after the start of the tax year; otherwise, it will be considered filed for the subsequent tax year.
Moreover, the business must possess a valid Employer Identification Number (EIN) and fulfill specific requirements, including having a maximum of 100 shareholders, only one class of stock, and all shareholders being U.S. citizens or residents. It's crucial to consult a tax expert to ensure the business complies with all necessary requirements and that the shift is executed properly.
At Whyte CPA Tax & Accounting, we recognize several benefits to choosing an S-Corp over a sole proprietorship, such as:
Limited liability protection: With an S-Corp, shareholders generally aren't personally responsible for the company's debts or liabilities, safeguarding their personal assets in case of lawsuits or substantial debt.
Distinct personal and business finances: An S-Corp is a separate legal entity from its shareholders, enabling clearer separation between personal and business finances.
Tax advantages: S-Corps are considered "pass-through" entities for tax purposes, meaning the company's income is taxed at the individual shareholder level rather than the corporate level. This can lead to significant tax savings for both the company and its shareholders.
Potential to raise capital: S-Corps can issue shares of stock to raise capital, a valuable tool for business growth and expansion.
Credibility: An S-Corp structure can enhance a business's professionalism and credibility in the eyes of potential investors and clients.
It's crucial to be aware that S-Corporations also have certain limitations compared to other corporate forms, such as a limited number of shareholders, only one class of stock, and a requirement for all shareholders to be U.S. citizens or residents. It's essential to consult with a lawyer or a tax professional like Whyte CPA Tax & Accounting to determine if an S-Corp is the most suitable choice for your business.
We provide year-round, pro-active & aggressive tax reduction planning along with bookkeeping, CFO level guidance and business tax preparation.
We'll make sure you never overpay in tax again.
As a small business owner, you're always looking for ways to optimize your tax situation. One potential solution is electing to be taxed as an S-Corporation (S-Corp). In this blog post, we'll explore how an S-Corp can help you reduce taxes and why it might be relevant for your small business.
One significant benefit of an S-Corp is that it is considered a "pass-through" entity for tax purposes. This means that the company's income, deductions, and credits pass through to the shareholders, who report this information on their individual tax returns. Unlike a traditional C-Corporation, this structure eliminates the potential for double taxation (where both the corporation and its shareholders are taxed on the same income).
As a sole proprietor, you're required to pay self-employment taxes (Social Security and Medicare) on all of your net earnings. However, when you operate as an S-Corp, you can potentially reduce self-employment taxes by paying yourself a "reasonable" salary and classifying the remaining profits as dividend distributions, which are not subject to self-employment taxes.
S-Corps can benefit from various business expense deductions, such as office expenses, supplies, travel, and other costs associated with running your business. By taking advantage of these deductions, your business can lower its taxable income and ultimately reduce the amount of taxes owed.
Certain fringe benefits, such as health insurance and retirement plans, can be offered to S-Corp shareholders who are also employees. These benefits are generally deductible by the corporation and can be excluded from the shareholder-employee's income, providing additional tax savings.
Electing to be taxed as an S-Corp can provide significant tax benefits for small business owners, from avoiding double taxation to reducing self-employment taxes and taking advantage of deductions and fringe benefits. It's essential to consult with a tax professional, like Whyte CPA Tax & Accounting, to determine if an S-Corp is the right choice for your business and to ensure you're maximizing your tax savings.
If you're looking for a CPA, Tax Strategist, Accountant or Bookkeeper in the Phoenix Region, we'd be honored to connect and find out if we're a good fit for you and your business.
Devin Whyte provides CPA Compilation and Review Services for businesses.
We'll create a comprehensive tax reduction strategy that helps you dramatically lower taxes in the short term and long term.
We'll setup, manage and help with your payroll needs whether you're a single owner s-corp, or if you're a large corporation.
We'll help your business get off the ground quick and easy, avoiding getting stuck & making mistakes
We provide high levels of business bookkeeping so your financials are perfect & always up to date.
Whyte CPA provides business tax returns for LLC's, 1099, S-Corps, Schedule C, Partnerships and C-Corps
