Duluth GA CPA Lifts the Veil Surrounding Entity Selection
Duluth GA CPA Lifts the Veil Surrounding Entity Selection
Choosing the correct entity for your new Georgia business is not the faint hearted or ill prepared. “Learning the Ropes” and how best to Incorporate Your New Metro Atlanta Business will do much to ensure that you only Pay Your Lowest Legal Possible Tax. Below is a sample of a recent inquiry received:
On December 2, 2009, I formed an LLC. I am doing professional services as by business and it is in the State of Georgia. I have registered my company with the State and also have FEIN #. I have a business checking account and payment for my work is paid into that account. I draw my expenses from that. My revenue so far is small and for the last few months.
My question is: I want to convert to S-Corp by filing with IRS. How soon this should be done? Can I do this retroactively?
That is do I have to a 1099 or C-Corp till today and S-Corp from the day I file with IRS for S-Corp.
Appreciate a general reply, if not specific points.
Can I avail your CPA services? What are the charges? Thanks
Below is my response:
Thanks for visiting www.HisCPA.com I can help you with all of that.
I will send you under separate cover a information about converting your LLC to an S Corporation for tax purposes and yes we can get the Incorporation Date as the S Corporation effective date if we act soon.
Quality wise we strive to be second to no one, while fee wise we strive to be mid-range.
I would welcome talking to you about your becoming a client and us serving your CPA needs for many years to come.
All the Best, John Dillard CPA
LLC’s can Legally Convert to an S Corporation Saving Thousands Annually
LLC’s came in vogue approximately fifteen years ago when the state of Georgia enacted legislation allowing an LLC (Limited Liability Company) to be established. Although the LLC does allow for some greater flexibility and ease of operation it often results in a higher tax obligation that might not have been incurred if the business was an S Corporation.
Tax law treats all the earned income from an LLC as being subject to both FICA & Medicaid taxes whereas an S Corporation has to pay those taxes reflected on W-2’s. For tax purposes, the law allows an S Corporation to legally convert to being an S Corporation as long as all active employee/owners pay themselves a fair and reasonable salary. This number is best determined by the facts, position, and profit of a business and the truest test of this calculation is what a business owner would have to pay someone else to perform their position.
All businesses are unique and therefore all saving opportunities are different. But even the smallest of businesses with the smallest of profits may save approximately $6000 by converting from an LLC to an S Corporation. Already this year, we completed this process for an LLC saving them $25,274 of FICA/Medicaid taxes.
There are only four rules to qualify for being an S Corporation. You must:
-Have a December 31st year-end.
-Have less than 100 shareholders.
-Have shareholders who are U.S. citizens or resident aliens.
-Have only one class of stock.
We offer a free initial consultation to see if converting your business to an S Corporation for tax purposes makes sense to you. Put our decades of experience to work for you ensuring you pay your lowest legal possible tax.
Contact HIS CPA PC (A Christian Atlanta CPA Firm) today.
John Dillard is an Christian Speaker/Author and an Atlanta CPA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!
We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Bookkeeping.
Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock, Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas.
Sphere: Related ContentRelated posts:
- Duluth GA on Utilizing Entity Selection for Your New Georgia Business
- Duluth GA CPA on the Successful Business Owner: Addressing Entity Selection
- Gwinnett CPA Firm on Incorporating in Georgia as Taught by Duluth/Gwinnett CPA
- Atlanta CPA Teaches Tax Nuances/Deductibility of Fringe Benefits of Georgia S Corporations or Georgia LLC’s That Have Elected to be Taxed as an S Corporation
- Gwinnett CPA Advises Atlanta Business What Entity Type Is Best for Your New Business
