Accounting News and Notes

What Clients of John Dillard CPA Have to Say…Informed Speaking & Leadership

Christian CPA – “Never Underestimate the Value

No one can lead from in the back. Leadership first beings with direction, builds with dedication, and is strengthened by wisdom. We are much more than a CPA firm. For a CPA who We strive to do much more than just prepare your taxes. We look to understand your business from the bottom up, by looking at all facets of your business. We come alongside you in your endeavors to succeed as an entrepreneur. Though we do not expect it, some of our clients have invited us to treasured and special family events. However our long-term goal is that you life, your business and your retirement are all better off as a result of our business relationship.

At His CPA we work to retain the best CPA’s on our staff and whose desire is to serve the Lord, by serving You, our client. Our motto of “Serving Him…by Serving You, One Tax Return at a Time” is not just a watchword but a legacy. Serving clients by the “Golden Rule” is where the “rubber meets the road.” This is just part of a series of letters where we highlight just a few of the recommendations and client letters we have received. Call us today and put our staff to work for you making sure you pay your lowest legal tax, avoid unnecessary penalties and long range planning. We look to provide CPA and Tax Return Advice you can trust. Put an award winning CPA to work for you today.

Yes you are right the below letter is not almost twenty years dated giving us the opportunity to gain the greater part of two decades of knowledge, wisdom and learning.

SCORE (Service Corps of Retired Executives Association)

July 26, 1994

Dear Mr. Dillard,

The presentation you made on Financial Management at our July 21st Chapter meeting has to rank with the top of all we have had in the recent past. It was informative, covered the subject, the audience was interested from beginning to end and above all, added to the knowledge of our counselors to make us better equipped to offer assistance to our clients.

Thank you very much for giving your time and intellectual ability.

Cordially, Leonard J. Seligman

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!”

What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31  Why are these verses here? Learn how HIS CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

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, Business Acquisitions/Sales and Bookkeeping serving Duluth/Gwinnett/Atlanta as an award Winning CPA

Duluth GA CPA: Getting Tough Tax Questions Answered

Hiring an Award Winning CPA is one of the best things you can do to make sure that your company’s financial statements are correctly compiled, IRS Representation issues are well done, and that your corporate and personal income taxes are done ensuring that only your lowest legal possible income tax is paid.

One of the first surprises many business owners face when incorporating their business is discovering a listing of the individual due dates associated with the filing of their incorporated entities and the requisite attendant returns. Although the IRS does allow for the proper extension of returns, there is little “wiggle room” for the prompt payment of all taxes. For nearly a century the IRS and states have been a pay as you go system requiring all legally incorporated entities and their respective members/owners/shareholders to pay their appropriate taxes thereon. Depending on your entity type as detailed below you will have listed the appropriate responsibilities thereon.

S Corporations, Partnership Returns, LLC’s, and LLP’s

Tax law treats partnerships/LLC’s/LLP’s and partnerships as disregarded entities. In layman’s terms this means that the entities income flows down through the entities owners and each individual shareholder/partner is then responsible for the payment of respective taxes. Thus, it becomes imperative to not only consider the overall taxable income of the entity to which you belong but also the taxes which will be due on the tax items flowing down to the individual owners.

As each owner’s situation varies dramatically, great care should be afforded in closely held business to ensure that taxes have been appropriately considered for all. When there is more than one partner, it may be wise to consider assisting in making shareholder/member distributions at the highest partners marginal tax rate to ensure that everyone gets at least enough to cover their respective tax obligation. Each of these entities will issue a K-1 to each individual shareholder to reflect their corresponding share of entity profits.

Although S Corporations have to issue K-1′s and make distributions based upon stock ownership percentages, partnerships, LLC’s, and LLP’s are allowed by law to issue K-1′s and member distributions based on any method that all owners agree upon. This is a distinct advantage partnerships, LLC’s and LLP’s have as agreeing members have the ability to do what they will with the profits whereas S corporations are required to issue distributions and K-1′s based upon each shareholder’s ownership percentage.

Entity Forms Required and Dates

S corporations are required to file a Form 1120S by two and one half months after the close of a business tax year unless they have filed a timely extension. Single member LLC’s can file, as a part of their personal return, a Schedule C and attendant schedules for self-employment tax, depreciation, etc. Multiple member LLC’s, LLP’s, and Partnerships are required to file a Form 1065 to report the entity’s profits and is due by three and one half months after the close of their tax year, unless a timely extension has been filed.

Great care should be given in all of these cases to ensure that all of the attendant taxes due on a business’s earnings have already been paid in accordance with IRS and state guidelines as taxes, per IRS code, are almost all, if not all, due by the end of a tax year or evenly throughout the year. Working closely with your CPA on at least a quarterly basis is a critical component of ensuring that you pay your taxes as you go, thereby avoiding unnecessary headaches, penalties, and interest.

Shareholder/Member Distributions vs. a K-1

Shareholder and member distributions are one of the most frequently confusing issues facing business owners. All too often I have seen this pitfall result in a business owner failing to have paid enough in taxes for their year-end liability. A shareholder, partner, or member of all flow through entities described above are required to report, as part of their taxable income calculations, the respective K-1′s issued to them. Frequently however, owners inadvertently believe that they are to pay taxes solely on their distributions rather than their K-1. Many times owners have discovered much to their dismay that their corresponding tax obligation is much higher than anticipated. Working with close contact and collaboration with your CPA is one of the best ways to mitigate any undue surprises.

C Corporations

C corporations are required to file a Form 1120 which is due two and one half months after the end of a business’s tax year. C Corporations, unlike the flow through entities above, are required to make estimated tax payments. A C corporation is therefore subject to the “double taxation” referred to so often when one hears of a corporation first paying taxes at the entity level and then taxes are paid again at the personal level when salaries and dividends are paid/declared.

HIS CPA PC believes that the best defense is a good understanding of tax law and having a CPA who anticipates your needs and works for your best advantage. Let’s get started today on planning your wise entity choices.

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304 Proudly Serving as a Gwinnett CPA for Decades

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, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

Duluth/Gwinnett CPA: Determining Withholding for S Corporation Owners

Atlanta CPA Advises on How to Determine What Your Withholding Should be for S Corporation Owners

To preclude the responsibility for an S Corporation owner to also have to pay estimated tax payments to both the IRS & Georgia, it is prudent to work closely with your CPA to adjust/increase your withholdings accordingly.

A Georgia LLC, LLP, partnership or sole proprietorship, you are subject to the 15.3% Self Employment/FICA/Medicare tax on all of your net earnings. The S corporation, on the other hand, pays you a deductible salary (which is subject to FICA/Medicare), and then the profits flow through your personal return via a Schedule K-1. This K-1 income allows for permanent deferral of the FICA/Medicare tax. The Georgia S corporation allows small business owners to legally save taxes as long as they pay a fair and reasonable salary to themselves. To learn more about how different entities are taxed visit http://www.hiscpa.com/article6.html

There is no income tax paid by as S Corporation when the annual tax return is filed to the IRS. However, as a part of the corporate return which is prepared, a Form 1120S, there is an attached schedule which shows each owners respective ownership percentage and via a Form K-1 for which each shareholder should reflect on their personal return. K-1 profits, losses, and shareholder distributions are all required by tax law to be issued based upon the each shareholders ownership percentage. In order for losses to be deductible a shareholder has to have a positive tax basis, which is a component of past profits, losses, and loans to and from the business. If a shareholder has no basis to cover losses reported on a K-1, they are by tax law considered to be “suspended losses” and can be rolled forward to future years when the shareholder has positive basis, which can be created by future years profits or the shareholder loaning money to the business.

An owner should report the K-1 profit, which is based upon their share of the business and not the amount of their shareholder distributions. This is a common misnomer about S Corporations and often leads to confusion for the new business owner. To that end it is best to remember that you pay taxes on the profits when you make them and not when you take them. For example generally speaking if your business nets $100,000 and you are the sole owner, you will pay taxes on $100,0000 whether you take zero dollar of shareholder distributions, a $100,000 or any number in between. Thus if you were to have a $100,000 profit in any given year and take no distributions then you would be able, absent any other issues, to take shareholder distributions in subsequent years with no additional tax responsibility as these monies would have already been taxed.

Converting Your LLC to an S Corporation for Tax Purposes

An LLC is legally allowed to convert over to an S Corporation for tax purposes which can legally allows the savings of thousands annually. Although being an LLC offers some flexibility (no Board of Directors/ease of formation), being an LLC will typically result in many businesses paying an higher tax bill on its earned income.

If an LLC converts to an S Corporation for tax purposes, it remains an LLC for all other issues thus maintaining the advantages initially desired. When a business converts over to an S Corporation all active employee/owners are required to take a fair and reasonable salary. The best test of a reasonable salary is what an owner would have to pay someone else to perform their position and it is a function of their position, responsibilities, and the business’s profit. If an LLC converts over to an S Corporation for tax purposes its federal and state income taxes will remain essentially the same. However, an LLC pays FICA & Medicaid taxes on all of its net earnings/earned income whereas an S Corporation will be obligated solely on its salary/W-2 wages.

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 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!

Contact HIS CPA PC (A Christian Atlanta CPA Firm) today.

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.

Duluth/Gwinnett CPA: Personal Returns Are Due October 15th.

Be Sure You Do Them Right

Though Personal Returns Are Due October 15th; Be Sure You Do Them Right so you will avoid unnecessary IRS audits, liens, collections, amendments, penalties and interest. The below is a sample letter we might send to a taxpayer critiquing the data they originally forwarded to ensure that a proper return is filed reflecting only their lowest legal possible tax:

For your returns I need:

For Your Personal Income Tax Return

Your daughter’s birth-date

Any Interest Income, Dividends, Capital Gains/Stock/Investment Sales

Property or cash contributions to Charity

Mortgage Interest

Property Taxes on personal cars

For your Corporate Return

What/How much is medical insurance premiums.

Although You did forward the amortization schedules they are not posted current nor were all payments listed for the three notes in the auto expense categories. Please get to me confirmation from the bank what the debt the company owes at 12/31/09.

Find a CPA who is not transaction oriented. Anyone can do what you ask or perhaps even file your returns for a few years while striving to keep your tax bill as low as legally possible. You will want to find a CPA whose ambition matches that of your own including your zeal and temperament and one who is a forward thinker. His practice and focus should be forward thinking and insightful, while consistently giving advice focusing on the future of your business and not solely an interpreter of its past. No CPA can change what has already transpired but a wise and sage CPA can help you and your business avoid pitfalls which will befall you otherwise. A CPA can help strengthen your management team, if used wisely and often, and can help guide you through many of business most thought provoking issues while offering counsel to both maximize your time and efforts.

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ 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, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Duluth/Gwinnett CPA: Personal Returns Are Due 10-15-13

Be Sure You Do Them Right

Though Personal Returns Are Due 10-15-13; Be Sure You Do Them Right so you will avoid unnecessary IRS audits, liens, collections, amendments, penalties and interest. The below is a sample letter we might send to a taxpayer to ensure that a proper return is filed reflecting only their lowest legal possible tax:

Before you mail the data please make the below changes to the spreadsheet you forwarded and then resend to me.

For the spreadsheet:

Please list your total revenue for your LLC on the Profit and Loss Statement.

Please set up a separate category for fixed assets and put all individual purchases of items over $1000 each (such as office chairs, computers etc.) in that category.

If the amount you list as a deposit has not yet been earned by the payee, please take it off your profit and loss schedule as it would still be an asset for your business and not deductible until/if the monies are earned by the payee.

Take prescriptions off the recap of your LLC data, as they are personal, but be sure to list the total in the items that you forward for your personal return.

Please separate out Meals & Entertainment and set up a separate account for them.

For your medical insurance please list the total paid for both you and your family out of your LLC.

Please forward me everyone in your families birth-date.

Please do not hesitate to call might you have any questions.

John Dillard, CPA of His CPA, PC (An Atlanta CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304

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, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

Duluth/Gwinnett CPA on Home Mortgages…How to Best Avoid Defaulting

Selecting the Right Home Mortgage

With all the different types of mortgages and fund investment strategies it is difficult, if not impossible, for the average investor/home buyer to make a decision about what is the best type of mortgage to pursue: interest only, fixed, variable, or for what term. Care should be given in all financial matters to review a particular households short and long term needs and then ideally balancing as much of these as possible so as to gain as large a financial advantage as possible while not unnecessarily exposing your personal household’s finances.

With the spirals in the real estate continuing with no apparent end in sight, leveraging or mortgaging real estate still makes financial sense. However, just because someone is willing to give you a loan does not mean that it makes for wise financial sense for your family. Great care and due diligence should be exercised when taking out a loan. Though surely for most if not all of us the first home purchase is one in which we are apt to be the most highly leveraged. Having been fresh out of school and perhaps just starting our careers we do not possess the financial resources to place any substantive amount of down payment. However, for each and every subsequent purchase we should take great care to ensure that our wants do not exceed our ability to pay. Accordingly it is wise to be sure to add a substantive buffer between our monthly expenses and our monthly income as we can always be sure there will be bumps along the way causing minor as well as substantive financial pitfalls along the way. Therefore we should be sure to living well below the standard of living that our income allows us to do so that these downward financial turns which are certain to occur do not unduly affect our ability to keep the financial obligations we incur. Although the loss of a job or a medical illness which occurs over more than just a few months or even years is apt to derail even the best planners, we should be ready to stand up to smaller adversities by ensuring that we keep our debt load low.

Remember “Creative Financing” means that you probably cannot afford it. Although I seldom disagree with a clients decision to buy anything I do often debate the timing as to a certain financial decision so as to not unnecessarily expose your household or business financially. Prudence when agreeing to acquire a property and taking on a debt load will be critical to ensuring long term financial success. Just because a particular lender is willing to give you a loan does not mean that it is a wise decision. I suggest that for all major debt acquisitions such as homes, buildings, and cars that you consult your financial adviser/CPA well before a decision becomes emotional and your desires begin to outweigh your primary concern of protecting the family’s long term financial viability.

John Dillard CPA of His CPA PC (a Christian CPA firm) is an author and Certified Public Accountant (All Rights Reserved). 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.

“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, Payroll Administration, Bookkeeping.

(Proudly Serving Alpharetta & Roswell for Over Thirty Years)

Lawrenceville/Snellville/Norcross CPA on Keeping Your Tax Returns Simple

Pay Only Your Lowest Legal Possible Tax

The first page of Form 1040 is used to calculate the taxpayer’s adjusted gross income. While many people think of their income as what is reported on form W-2, there are some other additions (and possibly some deductions) that have to be made as well. Itemizing deductions on your personal return can result in paying a smaller tax. However the rules on what can be deducted and what can’t are fairly strict. Using a guide/CPA and a tax checklist are your first step to ensuring that an accurate fair and just return and to ensure that you pay only your lowest legal possible tax. Below is letter we might utilize to help a client ensure their returns are both complete and correct:

To complete your return I need for you to use the tax form I have on the contact page of my website to reflect your corporate data and make the below changes.

You did not show the $40K of Gross Wages on your recap that is on your personal W-2.

You did not show the beginning checkbook balance off of last year’s tax return of $7,000.

Please be sure to show your year-end checkbook balance while being sure that deposits plus beginning cash less expenditures equals the year end checkbook balance.

Please list the Tax you paid if payroll taxes as payroll taxes, otherwise please identify as to what it is.

Please put bank charges into office supplies. Keeping your chart of accounts current, up to date and usable are essential to good business & tax management.

There is no need to give me totals by individual month, just the totals for the year.

ASAP after I get the above I will complete the returns.

Please note I still need your husband’s W-2′s and copies of your cash contributions/tithing statements.

Personal Income Tax Returns 101: Understanding the Basics

Top Mistakes Taxpayers Make
Avoidance of these common mistakes will greatly assist you in the proper preparation of your tax return, will help you avoid unnecessary IRS tax penalties and interest, and help you keep your tax bill as low as legally possible. See http://www.hiscpa.com/tax-top-ten.html

Determining Filing Status and Dependents
The first step in filing your personal Federal tax return is to determine your correct filing status and the number of deductions you can claim. It sounds simple, but it can make a difference in the amount of tax you pay. Visit http://www.hiscpa.com/personal-returns.html

Determining Your Adjusted Gross Income (AGI)
The first page of Form 1040 is used to calculate the taxpayer’s adjusted gross income. While many people think of their income as what is reported on form W-2, there are some other additions (and possibly some deductions) that have to be made as well. See http://www.hiscpa.com/agi.html

Claiming Itemized Deductions on Your Tax Return
Itemizing deductions on your personal return can result in paying a smaller tax. However the rules on what can be deducted and what can’t are fairly strict. Use this guide to determine what’s deductible. See http://www.hiscpa.com/itemized-deductions.html

How Long Should I Save Tax Records?
Lift up the veil and discover how long and what types of records you should retain and for how long are often the point of consternation for many taxpayers. Learn what you need to keep so that you are never unduly surprised if ever asked to reproduce documents. Visit http://www.hiscpa.com/tax-records.html

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304

His CPA PC…A Christian Atlanta CPA Firm: Never Underestimate the Long-Term Benefits

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, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

^{Atlanta CPA on Statute of Limitations on IRS Collections}

Know Your Tax Rights/Addressing Back Taxes with the IRS

^{Knowing the ins and outs of tax law can do much to help you along the way to make sure all of your tax issues are well understood and handled. Tax law is complicated, understanding some of the individual nuances will always be of great assistance. One way to be sure that you do not run afoul of a few of the basics will help you make wise and informed decisions. Just as a physician first strives to get a good understanding of the patient, their history and their symptoms before offering a diagnosis, so it is critical for a CPA to understand the underlying causes and tax problems, to address their causes and effects and to review original source documents that originally caused the liability to start with. If the taxpayers proceeds with haste rather than wise and judicious discernment, they may well lead themselves to far greater financial pain than originally existed. These basic tenants of IRS Statutes of Limitations will do much to enlighten potential tax opportunities and planning:}

^{Statute of Limitations on Refunds}

^{If you file a corporate or personal income tax return more than three years after the original returns due date, then any attendant refunds are lost forever. You cannot apply them to other outstanding years, you can not apply them to future years, as you get absolutely no credit for them at all. This is perhaps one of the greatest tax tragedies as I have personally witnessed taxpayers who would have otherwise received thousands and thousands of dollars of refunds forever legally lose their claim to any potential refund. Unfortunately there are no appeal options and once the three year statue lapses, it is over, you “cannot pass go” and your refund is forever lost.}

^{Ten Year Collection Period}

^{There is a ten year Statute of Limitation on the Internal Revenue Service ability to collect taxes. The ten year statute begins generally form the date the original return was filed or when the tax was assessed by the IRS. During the ten year tax period the IRS is able to use all of its collection tools including liens, levy, garnishment and seizure to protect the rights and interest of the Treasury Department/United States government. After the ten year period lapses the tax is no longer assessable by the Service. However during the ten year period, the taxpayer and the IRS may jointly agree to waive the ten year statute and extend the collection period. This may be advantageous when a taxpayers ability to pay may be improving and enforced collection efforts might prove to have disastrous effects.}

^{Suspension of the Waiver Period}

^{Generally speaking the statute of limitation period lapses after ten years after the return is originally due, filed or assessed. However there are several items which can legally extend the time period that the IRS has to collect outstanding monies. For the items below, the ten year statue is extended for the time the following events were occurring.}

^{Installment Plans. The time that a taxpayer is on a on a plan making regular monthly payments/an Installment Plan is not counted as part of the ten year periods lapsing and is therefore added to and extends the ten year original period.}

^{Suspension of Collection Efforts. If the IRS suspends collection efforts for a time in a effort to work with the taxpayer during legal or tax filings, this period as well is added to the ten year period when determining the statute of limitations. The most common examples of these would be time periods covering Installment Plans, submission and consideration of an Offer in Compromise and the periods covering that of a Bankruptcy filing.}

^{Tax Fraud. In the event that a taxpayer commits tax fraud there is no statute of limitations on either collections or for the auditing of applicable returns.}

^{Often toward the end of the ten year period, taxpayers will discover that collection efforts intensify as the Internal Revenue looks to collect any open tax monies due.}

^{Written by author John Dillard CPA of His CPA at 770 814 9304 and visit http://www.hiscpa.com/ (a Christian CPA firm). At His CPA we march to the beat of a higher drummer where we put the “Golden Rule” to work each and every day by “Serving Him by Serving You…One Tax Return at a Time.”}

www.HisCPA.com IRS representation, Offer in Compromise, Tax Problems/IRS Representation, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales and Bookkeeping.

Atlanta CPA: Incorporating in Georgia…What to Be Sure to Do

The Incorporating in Georgia Series

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.

At His CPA We Cover a Wide Host of Full Service CPA Firm Services Including:

Atlanta Tax Problems, IRS representation, Offer in Compromise

Incorporation in Georgia, Corporate and Personal Income Tax Returns

Atlanta Part-time CFO, Virtual Controller, Business Planning

Atlanta Bookkeeping & Financial Statements

-Made any Necessary Tax Elections. All newly incorporated business’s will need a new Federal Identification Number/EIN, which can be applied for on-line at www.irs.gov/ Also companies that desire to become an S Corporation/flow through entity for tax purposes must file IRS Form 2553: Election by a Small Business Corporation within 75 days of the beginning of the tax year to which you would like to become effective. When incorporating with the Secretary of State a company is initially a C Corporation and has to file the S Corporation paperwork to become an S Corporation. LLC’s who wish to become an S Corporation for tax purposes should also file this form within the time allotment referred to above.

On an ongoing basis also many business owners fail to:

-Have an Annual/ Periodic Board of Directors Meeting. All C Corporations and S Corporations are required by law to have an Annual/Periodic Board of Directors Meeting. Failure to do this may indicate a lack of the owners respect of the “corporate veil” thereby potentially impugning their rights of personal legal protection.

-Have an Annual/Periodic Shareholders Meeting. All C Corporations and S Corporations are required by law to have an Annual/Periodic Shareholders Meeting. Failure to do this may indicate a lack of the owners respect of the “corporate veil” thereby potentially impugning their rights of personal legal protection.

-Paid the Company’s Annual Registration Fee to the Secretary of State. Failure to pay this fee can result in your business being listed as a Non-Compliant Entity or worse yet Administratively Dissolved by the Secretary of State’s office. The registration form should be filed online at www.georgiacorporations.org/

-Maintain a Valid Business License. Business licenses are to be obtained from the county the business transacts business in/has a physical presence. If the business is located with a town’s city limits, then the license is procured from the city.

For all business’s before you incorporate, it is prudent to first talk with a Certified Public Accountant to ensure that you select the right entity type for your business. To gain a basic understanding of these nuances visit http://www.hiscpa.com/article2.html To read more about the incorporation process visit the Georgia Secretary of State at http://sos.georgia.gov/corporations/filing_procedures_corp_2001.pdf

Duluth/Suwanee/Lawrenceville  CPA:  IRS Just Announced the 2013 Mileage Rate

The IRS Just Announced the 2013 Mileage Rate as 56.5 cents per mile. This is up from the prior year mileage rate of 55.5 cents per mile. Please keep in mind that tax law requires all taxpayers who use an auto for business use to keep a by day mileage log to support all business miles.

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 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!

Contact HIS CPA PC (A Christian Atlanta CPA Firm) today.

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

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