Accounting News and Notes

Over the River and Through the Woods…Directions to His CPA PC

Find Out What Hundreds of Gwinnett/Atlanta Business Owners Already Know

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

            From 285 & 85

• Go 85 North of 285 approximately seven exits to the Sugarloaf Parkway exit. Go west approximately three miles on Sugarloaf Parkway until Sugarloaf Parkway dead ends, take a right on Peachtree Industrial Blvd.
• In approximately one-half a mile on the left is entrance to River Plantation Subdivision (Noblin Ridge Drive). Please note there is a Kids R Kids School on the right, as you are turning left into the subdivision.
• After enter subdivision, take the 1st left onto Noblin Woods Trail.
• Take 2nd left onto Woods River Lane.
• Home is 5th residence on the left, 1940 Woods River Lane.

From Fulton County near State Bridge

• Take State Bridge straight over Medlock Bridge Rd. and go over the river into Gwinnett County and at the first main intersection take a left onto Peachtree Industrial.
• Go approximately 1 mile and you’ll go straight over Hwy. 120 and continue approximately 3 more miles.
• In approximately two miles, past Hwy. 120, on the left is entrance to River Plantation Subdivision (Noblin Ridge Drive). Please note there is a Kids R Kids School on the right, as you are turning left into the subdivision.
• After enter subdivision, take the 1st left onto Noblin Woods Trail.
• Take 2nd left onto Woods River Lane.
• Home is 5th residence on the left, 1940 Woods River Lane

            From Fulton County at McGinnis Ferry Road

• Come over the river and through the woods into Gwinnett County and take a right on Peachtree Industrial. Go to approximately the fifth subdivision on the right which is River Plantation Subdivision.
• Take the 1st left onto Noblin Woods Trail.
• Take 2nd left onto Woods River Lane.
• Home is 5th residence on the left, 1940 Woods River Lane

John Dillard, CPA of His CPA, PC (A Duluth CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    (All Rights Reserved) 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. To discover John Dillard’s Published Books and their vision visit  http://www.john-dillard.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.

Gwinnett CPA asks Atlanta Believers: What Are You Doing Today for the Kingdom of God? 

John 13:38 Then Jesus answered, “Will you really lay down your life for me?” 

If a video is worth a thousand words these will indeed be priceless: http://www.youtube.com/watch?v=rsEGkj30R5Y&feature=related

http://www.youtube.com/watch?v=C0j3NgC8fXw 

God has a calling on you and your heart. If you will answer it, He will reveal His destiny for you and your life will never again be the same. Call on the Lion of Judah, the Great I Am and found the Lord of Lord, the King of Kings who will be there waiting to support, love guide and direct.

Luke 12:31 But seek his kingdom, and these things will be given to you as well.

A Christian CPA Firm: Never Underestimate the Long Term Benefits

 John Dillard, CPA of His CPA, PC (A Duluth CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    (All Rights Reserved) 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. To discover John Dillard’s Published Books and their vision visit  http://www.john-dillard.com/

Duluth CPA on Incorporating Your New Georgia Business

Now that you  have started a new business and now need tax advice to take your business to the next level and to ensure that you set up as the correct/best legal entity type for your new Georgia business. Choosing to incorporate your business as a corporation will do much to protect your personal assets from legal liability issues while potentially shrinking your overall year-end tax obligation while also providing benefits for yourself, as well as your employees. We are here to serve you as you make this important decision. Over the decades we have helped thousands pursue the dream of owning their own business and helping them understand and utilize the entity choice that is best-suited for their business.

Accordingly, Incorporating in Georgia requires that you file for the company Articles of Incorporation with the Georgia Secretary of State’s Office. Corporations should also be sure to prepare a legal posting/announcement for the legally authorized newspaper in the county’s paper, establishing bylaws, election a Board of Directors, Officers and the issuance of stock.

Though there is never  a good substitute for a good attorney to help you address legal issues, we look to help business owners with many of the varied nuances of the incorporation process to ensure that your new business is duly incorporated and following applicable state law to stay in compliance. The below is a sample letter that might be sent to work with your attorney to address and correct open issues. As always you will want to be reminded to have a valid business license, pay to the Secretary of State your firms annual registration fee, and to have your Annual Board of Directors, Officers and Shareholders Minutes meeting. If you opt to become an S Election you will file IRS Tax Form 1120S when filing your company’s corporate income tax return.

In critiquing the paperwork for your incorporation that you forwarded: 

 I did not see the Required Notice/Legal Posting of Your New Business’s Incorporation, which is required when you incorporate to make a legal posting in the officially recognized newspaper in the county that your business was incorporated.

Stock was authorized as 5000  shares and it appears as if 5500 shares were issued. Please review/advise as you cannot issue more shares than authorized in the initial Incorporating Papers absent a stock split or change the existing authorized shares.

I would have marked S Election request to be in accordance with IRS Rev. Proc. to qualify for being filed more than 75 days after your incorporation date.  If you do not receive any acceptance by 10-25-10, let me know that I will re-file the election marking it accordingly, being sure to properly compete IRS Form 2553:  Election by a Small Business Corporation 

Please be sure to draw up a lease between the two companies to document the rental agreement between the two companies. I would suggest you consider a triple net lease. 

“Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

John Dillard, CPA of His CPA, PC (A Duluth GA CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    http://www.john-dillard.com/ (All Rights Reserved) 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. To discover John Dillard’s Published Books and their vision visit  http://www.john-dillard.com/

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.

Duluth/Alpharetta/Roswell CPA Firm on Addressing Back Taxes/IRS Representation Problems With the Internal Revenue Service

For the individual or business taxpayer who has run afoul of the IRS and is dealing with seemingly overwhelming tax issues, there are words of wisdom to successfully resolve your tax problems, how to pay your taxes on a timely basis by properly utilizing withholding, estimated payments, and extensions. Though there are many things we can do to help you avoid tax problems and unnecessary penalties, we can also help you discover the general guidelines and rules of how to qualify for and process an Offer in Compromise. This is a process where both the Internal Revenue Service and the State of Georgia will reduce your bill to what you can afford to pay based upon detailed tax regulations, procedures, and careful compliance. Below is a sample letter one might use to begin to address unfiled and unpaid Corporate Income Tax Returns for Back Tax Years:

Internal Revenue Service

Atlanta GA 39901 

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament and to address all the monies they presently have open with the IRS, including both payroll taxes and income taxes.  I am willing/eager to supply you with any information that you might need in order to process their case and to pay any and all outstanding monies. Please forward to me a detailed record of account and summary of their open payroll and income taxes at your earliest convenience. 

I have just finished their corporate return for 2008 and will be working to get their 2009 return completed ASAP. 

I look forward to working with you to satisfactorily address all open client monies and to get all of their returns filed. 

Sincerely, John C. Dillard, CPA, PC, Partner in Charge 

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/    http://www.john-dillard.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.

Duluth/Atlanta CPA Advises Atlanta Business Owners on Preparing a Balance Sheet…The Atlanta Bookkeeping Series

How to Prepare a Balance Sheet

Preparing a balance sheet in good form will break out the assets and liabilities separating the long-term from the short-term items as well as a separate section for equity. Short-term items are those that are anticipated to be utilized/spent/collected/paid within the next twelve-month period. Long-term assets/liabilities are those whose ultimate disposition is to be addressed beyond the following year and not within it.

A Balance sheet begin with the current asset section with cash usually listed first and then with accounts receivable and inventory following next. Any other short-term items would also be included in this section with care given to presentation to ensure that like kind items and accounts are appropriately detailed and segregated.

Next the long-term assets of a business are listed, consisting of items that will be held by a business beyond the next twelve-month period. In this category you will find a company’s fixed assets such as equipment, furniture and fixtures, vehicles, and leasehold improvements along with their corresponding amortization. Other long-term assets might include any deposits the company has paid or other items anticipated to be an asset beyond the next year.

Subsequently  on a company’s financial/balance sheet you will find the current liabilities section, which will list all of the items a firm owes and believes it will need to address short term. This section typically will have included in accounts payable, payroll and sales taxes payable, customer deposits, and any short term portion of any notes payable (the long term principal portion of the note will appear on long term debt section which should immediately follow the current liability section).

A balance sheet ends with the equity/stock section which details a company’s stock, retained earnings/capital account, distributions/dividends, and the annual year to date net income (loss) of the business for which most accounting packages rolls forward from the profit and loss. Your distribution account should be closed at the end of each year to the retained earnings/capital account at the end of each year so that the net worth of a business might be tracked.

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/    http://www.john-dillard.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!

Gwinnett/Duluth GA/Tucker CPA Advises Atlanta Taxpayers While Evaluating Whether or Not to Submit and Offer in Compromise

Staying on your “P’s & Q’s” with your taxes is essential but it is even more important when processing an Offer in Compromise to Address Back Taxes, IRS Representation & Submitting an Offer in Compromise. Below is a sample letter that I might sent a client to address such time sensitive tax planning issues:

I wanted to be sure you are aware of the issues at hand and correspondence to date: 

- I  originally forwarded to you the general rules of processing an Offer in Compromise detailing the urgency and details of submitting same.

-Then I filed my Power of Attorney asking for sixty days to file all of your returns and to file an Offer. If we are to meet this deadline I need your corporate and personal income tax data by this week. Then by the end of next week I will need a new Form 433A, Form 433B and Form 656, for you to give me an estimate of what your 2010 profits will be from each business so that we can tax plan for accordingly.

-Just this past week I sent you a e-mail detailing your commitment to file the 2009 corporate and personal income tax returns within ten days.

- I recently forwarded more correspondence to the IRS office asking that there be no collection efforts.

-Just yesterday I sent you data needed to properly prepare your returns.

-This will confirm our discussions that you are aware of the need to pay your taxes as you go or the IRS will not even consider an Offer in Compromise.

-This will confirm our conversations that I suggest that ASAP after we complete the 2010 tax planning above that you retain a payroll service to pay/keep your taxes current. 

I will send you under separate cover information about keeping your filings and tax payments current. 

If you fail to meet the deadlines above I believe the IRS ASAP will soon

-File Liens

-File Levies

-Seize Accounts/Assets

-Garnishment Income/W-2 wages 

http://www.hiscpa.com/article1.html Atlanta CPA Illustrates Difference Between Planning & Historical Accounting by North Fulton CPA
http://www.hiscpa.com/article3.html Gwinnett/Duluth CPA Teaches Personnel Keys to Managing Business Growth
http://www.hiscpa.com/article6.html Alpharetta/Roswell CPA Teaches the Tax Effects of Entity Choice
http://www.hiscpa.com/marketing-efforts.html Norcross/Sandy Springs CPA on Tracking Marketing Statistics for Your Georgia Business 

And this is only some of the information available on our web site. You also have at our blog a host of other varied and timely tax and business management issues you can use. 

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/    http://www.john-dillard.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 Firm Offers Tax Guidance to Running Your Atlanta Business

Understanding the nuances and issues affecting business owners is essential to the efficient running of a business. Below is a sample excerpt that I might receive addressing unpaid Atlanta Back Taxes, Setting up an Installment Plan with the IRS, filing of payroll tax reports and their impact on the filing and payment deadlines of corporate income tax returns. 

I am killing myself trying to get 2009 finished.  I’m not sure what the deal is with the bookkeeper but I’ve had to make a change.   I finally was able to get my payroll file yesterday only to discover they did not file 941’s for the last 3 quarters of 2009 or GA withholding for the last 2 quarters.  What a mess!  I was up late last night doing those.  Thankfully the bookkeeper had made some payments online and we are overpaid for the year on 941 tax. I am so in over my head right now trying to handle the day-to-day office stuff while catching up the accounting side.   

We may need to extend 1120S but I plan to have all to you in time to file before the April 15 deadline for our S Corporation.

Below is my response: 

Please be reminded we have two deadlines to contend with. One is the corporate return which is March 15th and is easily extended.

 The second is getting on an Installment Plan which I do not suggest we push past the thirty days from the date of the IRS notice being mailed out to you. The concern there is that we do not want to immediately void an Installment Plan if we cannot pay in full the taxes owned on the 2009, as paying your taxes current is a condition of an Installment Plan staying in place.

One of the first things that I believe would be in your best interest is to hire a payroll service to prepare all of your payroll checks, debit your account to pay and to file all of your payroll tax reports. Payroll is perhaps the most administratively burdensome issue addressing America Small Business Owners and assigning this duty to a outside payroll processor who does only this, is a wise and prudent decision. In fact, I have found that even though I am a CPA that a payroll service can process my payroll

http://www.hiscpa.com/article6.html Alpharetta/Roswell CPA Teaches the Tax Effects of Entity Choice
http://www.hiscpa.com/marketing-efforts.html Norcross/Sandy Springs CPA on Tracking Marketing Statistics for Your Georgia Business 

And this is only some of the information available on our web site. You also have at our blog a host of other varied and timely tax and business management issues you can use. 

John Dillard, CPA of His CPA, PC (A Duluth CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    http://www.john-dillard.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 

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.

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.

Award Winning Duluth, GA CPA Teaches Tucker/DeKalb/Forsyth/Alpharetta Business Owners Advice on Incorporating

Lifting the Veil Surrounding Entity Selection, When Incorporating in Georgia 

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: 

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.

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. 

A Christian Atlanta CPA Firm: Never Underestimate the Long Term Benefits. 

John Dillard is an Christian Speaker/Author and an Alpharetta/Tucker 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.

Duluth GA on Utilizing Entity Selection for Your New Georgia Business 

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?

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.

 Duluth  CPA Firm Advises Business Owners How to Lower Their 2009 Tax Bill 

Below is a sample letter we might sent to a taxpayer as well as a checklist of items to evaluate when planning for your 2009 tax bill to both the IRS and Georgia/state. Being well aware of these items will do much to prevent unnecessary tax surprises: 

In Working on Your 2009 Tax Planning Please: 

-Please forward a copy of your year to date pay stub showing this year’s total gross wages and withholding.
-Please advise of any substantive changes you anticipate occurring when comparing your 2008 Personal Tax Return to 2009 Actual Results.

-When you forwarded the detail of your financial data recap for the year you separated out payroll from taxes. Were all of these monies to pay wages and payroll taxes for the business owner or were they for other items and personnel. Please forward a recap of the detail of these items. 

Especially as we close the tax year, we need to take a look at your financials to do some tax planning for the year. Below please find recapped below a list of the items we will need in order to properly evaluate and plan for your year-end taxes as well as address any year-end tax planning ideas.

As the end 2009 approaches, it’s time to think about what can be done to minimize the amount of taxes paid to the IRS by your business. Although tax planning should be a year-round process, there are several year-end strategies you can take, particularly if you are an S Corporation.

Below is a checklist as the end of the year approaches:

• Keep  your inventory as low as possible on December 31st. Since you are taxed based on the value of your goods in stock, it makes sense to minimize your inventory.
• If you are an accrual-based taxpayers may want to consider delaying end of December billing until early January. Since income is recognized when it is billed, you can delay the tax effects from 2009 until 2010.
• Locate and record all tax-deductible expenses and accounts payable before the end of 2009, rather than waiting until next year. This includes your personal expense report for December. Cash-based taxpayers must pay these expenses, while accrual-based taxpayers need only to receive and enter the bills.
• Setting up a qualified retirement plan. A defined-benefit plan can be a good way to reduce taxes while preparing for your retirement.
• Turn in an expense report and obtain reimbursement by years-end for any business expenses you might have incurred personally such as business mileage on your personal vehicle.

2009 Year End Planning Tips

Keep track of your business mileage, the rate for 2009 is 55 cents per mile. Please keep in mind IRS rules state that you must have kept a log of the miles you have driven to take this deduction.

Business owners should take additional steps to ensure the success of their businesses in 2010. If you expect a big change in your 2010 income, you should consult with an accountant now to minimize the tax impact. If you are a subchapter S corporation, you should plan to have the annual meeting of your Board of Directors as close to the new year as possible.

While this generic tax advice can be helpful to any small business, there are probably some specific steps your business can take to reduce taxes at the end of 2009. We have helped many small businesses in Atlanta and North Georgia minimize their tax liabilities and increase their profitability. We would be happy to sit down with you and discuss your situation. Please feel free to call or contact us.

 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!  

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.

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.