- March 20th, 2013
- John Dillard
- Financial Statements & Bookkeeping, Income Tax Preparation of Corporate & Personal Income Taxes
At His CPA PC, we are committed to upholding the law of the land and God’s law. As such we look to provide plain talk that clients can understand that looks to use tax law to the full extent possible to ensure that you pay only your lowest legal possible tax. The below is an example of an inquiry we might receive off of our web site:
I was “googling” a Christian CPA to answer some questions and I found a link to your website.. I see that you provide services to clients in my area so maybe you can help me.
In July, I lost my job as part of a “staff reduction”. I’ve been a volunteer youth minister for 13 years and it is my true passion. That is how I have been spending my time for the last 6 months, living off my severance, savings and investments. I am wondering about becoming a non-profit doing the same thing I am doing now, but hoping to pursue monthly financial support. Also, I am wanting to sell items online (although I don’t expect to sell many) as another means of income.
Although I have always filed my own taxes. I really do not understand taxes or tax laws and am not sure if what I am considering is even feasible. However, if it is, I would like some direction on how to get 501c3 status and I would like to know what I will need to save and such to make the upcoming months on myself or a CPA. Any advise you provide is appreciated!! God bless!
Below is my response:
Thanks for visiting www.HisCPA.com There are many reasons a taxpayer may look to incorporate their business ranging from legitimacy, liability limitation and tax mitigation. Understanding these many nuances is your best first step in ensuring that you chose an entity type is best achieving success given your business model and operations. Entity selection is determinant on many issues ranging from citizenship, number of shareholders, ease of operation, tax obligations and year-end filings and even who your shareholders will be. Though many of these issues will conflict, working with a professional who is well versed in these issues will help you make the best election available for your new Georgia Business.
The Advantages and Disadvantages of Incorporating as a Subchapter S Corporation, C Corporation, Limited Liability Company or Partnership
When looking at what type of entity your business should be, we strive to balance the legal protection issues vs. the tax savings. Over the years, we have developed the mindset that there is no perfect election but there are ones that are better than others.
The information below and the assumptions we make are based upon the fact that my clients tell me that they want to pay as few tax dollars as legally possible. Below are some very specific rules, as well as some generalities. If you are considering incorporating in Georgia, we suggest that you sit down with a tax professional to see how these guidelines relate to you.
About S Corporations:
Subchapter S Corporations can have no more than one hundred shareholders and they all need to be U.S. citizens or resident aliens. This corporation type almost always has to have a calendar year as the fiscal year. S Corporation rules have been around since the 1950s and were set up to simplify the rules and regulations of being a business owner.
Liability Protection and Subchapter S Corporations
A subchapter S Corporation, like a C Corporation, affords the business owner personal liability protection from business risks. Some of the keys to maximizing that protection are to treat the corporation like one by doing all your business in the corporate name, signing all of your documents listing your corporate title, not co-mingling any personal issues/bills in the corporation, and by having your annual Board of Directors and Annual Shareholder Minutes Meeting.
If you are looking to raise most of your revenue from sales then I would suggest you being an S Corporation. I will send you some information under a separate e-mail. When you have reviewed it please give me a call and I will be happy to discuss.
Please be reminded we offer a free initial consultation and a free look at your prior tax returns. Be sure you pay only your lowest legal possible tax.
www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Grayson, Alpharetta, Roswell, Sandy Springs & Tucker as a Faith Based CPA