Accounting News and Notes

Duluth/Gwinnett CPA on C Corporations…How to Avoid Double Taxation

Incorporating in Georgia

Duluth Income Tax Preparation

This type of corporation is perfectly set up for those to whom do not qualify to be an S Corporation, such as a public held company that has thousands of shareholders, lots of classes to stocks, and sells its stock to anyone (corporations, individuals, retirement plans, etc).
Taxation of C Corporations

A C Corporation pays taxes on all its profits first at the corporate level and then when the dollars are paid out to the owners in subsequent years, the owners pay tax again at the individual level. C Corporations, therefore, are exposed to a “double taxation” that none of the other entity types are exposed to. If you think taxes are bad enough paying them once, try paying them twice. OUCH!

Converting from a C to an S Corporation in Georgia

A C Corporation can make a timely tax election to become an S Corporation and start taking advantage of tax advantages of being an S Corporation. Care should be taken to ensure that all shareholders understand and agree to become an S Corporation and that there are no or relatively insignificant net operating losses that might still be utilizable if you were to stay a C Corporation. Then after these are utilized/considered, we would effect the change.
To read more and see which entity type is best for you visit http://www.hiscpa.com/article2.html

www.HisCPA.com Incorporating in Georgia, Setting up an LLC in Georgia, Setting up an S Corporation in Georgia, Georgia Entity Selection, Converting Your GA LLC to an S Corporation, Converting Your GA C Corporation to an S Corporation, GA LLC, GA S Corporation and Converting Your Georgia Business to an S Corporation

Duluth/Gwinnett CPA: Should my New Gwinnett/Atlanta Business be an LLC or an S Corporation?

If you have a new business the first thing you will want to do is to review to see which type of entity works best for your corporation. Both the LLC (Limited Liability Company) and the S Corporation continue to lead the way in being the most popular choice of entity selection in the state of Georgia. There are many options to chose from when choosing the best entity for your business including:

S Corporations. Generally results in the lowest amount of tax for most businesses. Best suited for U.S. citizens or resident aliens who have less than one-hundred shareholders who do not need to be another entity type for operational or liability reasons.

-LLC. Limited Liability Company. Generally these are well suited to real estate development companies, for entities where owners are not U.S. citizens or resident aliens, you have multiple classes of stock, or have over one-hundred shareholders.

-LLP. Limited Liability Partnership. Frequently utilized by multi-practice physicians and dentists who are looking to limit their professional liability from other owners and practitioners.

-Partnerships. These entities can have general or limited liability partners and are also well suited for business whose predominant focus is the investment of real estate dollars or ventures.

-C Corporations. Typically results in the highest of all the tax entity choices as a result of owners having to pay taxes twice (first at the corporate level for any profits and then later for any dollars paid out to stockholder owners).

To review these choices in greater detail please visit our web site at http://www.hiscpa.com/article2.html  There on the site you will also find a mathematical example which will further illustrate the nuances and differences in taxes by entity selection.

For those who are just beginning a new business a checklist is often a great way to ensure that you have all of your bases covered. One is available for your use and review at http://www.hiscpa.com/checklist.htm  Whether you are an Atlanta business or one in Duluth, GA you will find these articles an invaluable source of information to utilize again and again.

Preparing and Reviewing Financial Statements
As your financial results of your business are like a doctor’s chart of their patient, this will help enable you to understand financials and their use.  See http://www.hiscpa.com/financial-statements.html

Managing the Heart Beat of your Business
Unlock the secrets of your business by learning to check its pulse by a review of your company’s internal financial information.  Visit http://www.hiscpa.com/managing-financials.html

Using the Profit and Loss Statement to Determine the Value of Your Business
The balance sheet shows what a business is worth, the profit and loss statement, properly analyzed, shows a company’s growth rate and rate of return, and points to its future viability. For more information http://www.hiscpa.com/profit-loss-statements.html

Corporate Returns
Discover what type of returns your corporation is required to file and its corresponding due dates ensuring that you do not miss an important deadline resulting in unnecessary penalties and interest.  See http://www.hiscpa.com/business-tax-returns.html

Incorporating in Georgia…Determining  if an S Corporation or LLC is Best for Your Business

Incorporating in Georgia is still the most important decision for all initial business owners. If you have developed your business model, written your business plan, and are now ready to set about the task of actually beginning your business you will want to take care of this critical tax step. Although you are not indefinitely locked in to a entity choice as an LLC or a C Corporation can elect to be an S Corporation and an S Corporation can become a C Corporation, you initial election is most apt to be the most critical business choice you can make.

While being an LLC or LLP can be most advantages for a law firm or multiple physicians practice, these selections will generally pay more in taxes than an S Corporation as all of their net earnings are subject to FICA/Medicaid taxes while only ones W-2 from an S Corporation would be. I would suggest all multiple physician practices greatly consider the advantages of an LLC or LLP can bring as professional liability statutes allow them to be responsible for professional liability. However a normal tort issue/civil liability cannot be assessed personally so these same concerns will not be of importance to a retail, commercial, wholesaler, distributor, etc. as they would not be subject to professional liability statutes. Real estate ventures are often well suited to considering whether being an LLC, LLP, or partnership might be in their best interests as you can move real estate both in and out of these entities without any gains being recorded and taxed.

For those looking to consider setting up an S Corporation there are four basic requirements which include being an U.S. citizen or registered alien, having one class of stock, having a calendar year-end, and having less than 100 shareholders. S Corporations continue to be a popular choice among many who do not need/have to be another entity type because of the nature of their operations or needs.

Incorporating is not for the faint of hear so be sure to consult with your CPA to get started as well as periodically to ensure that the entity selection you are presently using is best for you and your business, your tax bill, and legal liability limitation issues.

To read more and see which entity type is best for you visit http://www.hiscpa.com/article2.html

www.HisCPA.com  A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Cumming,  Alpharetta, Dunwoody, Sandy Springs and Tucker as a Faith Based CPA Firm

Duluth/Gwinnett CPA: Incorporating in Georgia

So you have opted to get a new business going and have gone to the Secretary of State’s web-site and it all seems to be a fill in the blank so you think everyone can do it. All you have to do is to know your business name and address. Right? Well, not just no; definitely no.

Most all, who go it alone fail to consider some and many all of the below issues:

Authorized Shares. How many initial shares to initially authorize leaving no room for flexibility to add future shareholders later.

Registered Agent. Naming a individual who will be the point of reference for all legal filings.

By-Laws. The rules and regulations under which a business will make decisions and the functional capacity of its owners.

Election of Officers. This will be those who are duly authorized to sign contracts on behalf of the company.

Election of Directors. All S and C Corporations should have a duly authorized and elected Board of Directors, even if you are the only one on it.

Stock Issuance. All corporation should have and record the issuance of stock evidencing their ownership in the company.

Board of Directors Meetings. Meeting should occur on a substantive and periodic basis documenting substantive decisions reached and determined.

Shareholders Meetings. Meeting should occur on a substantive and periodic basis documenting substantive decisions reached and determined.

Just as you would not want to perform your own major surgery so will you not want to incorporate yourself.

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Cumming, Dunwoody, Alpharetta, Dunwoody, Sandy Springs and Tucker as a Faith Based CPA Firm

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Offering Corporate and Personal Income Tax Returns,  Offer in Compromise, Tax Advocacy, Tax Mitigation and Tax Compliance, Cash Management, Bookkeeping, Financial Statements and Accounting, QuickBooks Guidance, Business Set-up and advice on Incorporating in Georgia, Management Reporting, Virtual Chief Financial Officer, Strategic Planning, Mergers and Acquisitions, Profit Maximization, Growth Management, Business Start-up, Back Taxes, IRS Representation, IRS Appeals, IRS Collections, IRS Installment Plans & IRS Wage Levies

Duluth/Gwinnett Christian CPA Serving Corporate Income Taxes to Gwinnett & Metro Area

www.HisCPA.com

If you are a business owner run, do not walk, to the nearest CPA office. Owning of a business is something that you do not want to do alone or without the services of an experienced Certified Public Accountant. Being a new business will bring many critical issues, all of which may well thwart your efforts at having the advice of a CPA who specializes in business issues.

For the New Business Owner we have on our web-site tools which will greatly assist in getting your new business started.

Tax Effects Of Entity Choice
We can help you navigate through the myriad of tax law letting you make the best strategic and tax decisions in incorporating your business. http://www.hiscpa.com/article6.html

New Corporation Forms and Registrations Checklist
Whether you are just incorporating or have been in business for years. This summary will enable you to quickly locate the forms and guidance you need to ensure your business maintains tax compliance. http://www.hiscpa.com/checklist.htm

Incorporating in Georgia
Starting your business off with the best tax elections for your business are amongst the most important business decisions you will ever reach. Discover how you can best set yourself up for business success as you consider this critical part of your business start-up. http://www.hiscpa.com/incorporating-ga.html

Knowing which return to file is a good start to understand both your tax obligations and responsibilities. Below please find a recap of the different returns required to be filed by entity type:

Form 1120: C Corporations. A C Corporation Return is a four page return, not accounting attachments which requires a business to report its assets, liabilities, and equity as well as its results of operations (i.e., its profit and loss statement). Also on the form any applicable corporate income taxes are assessed, as well as the method of tax basis filing, whether cash or accrual. http://www.hiscpa.com/business-tax-returns.html

Form 1120: S Corporations. An S Corporation Return is a four page return, not accounting attachments which requires a business to report its assets, liabilities, and equity as well as its results of operations (i.e., its profit and loss statement). Also as an attachment to the form a K-1 is attached indicating each partners respective share of the company’s operating results and tax preference items. The return also will indicate the method of tax basis filing, whether cash or accrual. K-1′s, by tax law, have to be prepared based upon the ownership percentages of respective partners. http://www.hiscpa.com/tax-basis.html

Form 1065: Partnership Returns. Partnership Returns are required to be filed for all Partnerships whether or not they are incorporated, LLP’s, as well as LLC’s who have opted to remain a partnership for tax purposes. A Partnership Return is a four page return, not accounting attachments which requires a business to report its assets, liabilities, and equity as well as its results of operations (i.e., its profit and loss statement). Also as an attachment to the form a K-1 is attached indicating each partners respective share of the company’s operating results and tax preference items. The return also will indicate the method of tax basis filing, whether cash or accrual. K-1′s, by tax law, can be prepared based upon the ownership percentages of respective partners or any other allocation method by which the partners agree.

Getting a good Atlanta CPA to help with your tax issues is your best first step to obtaining sound business and tax advice helping to ensure the likelihood of your business succeeding.

Contact John Dillard CPA of His CPA at 770 814 9304 and visit www.HisCPA.com

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 A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Cumming, Dunwoody, Alpharetta, Dunwoody, Sandy Springs and Tucker as a Faith Based CPA Firm

Duluth/Gwinnett CPA: Is Setting Up  an LLC Really the Best Tax Answer for Your New Georgia Business? 

In Georgia roughly half of all businesses that are Incorporated in Georgia are LLC’s (Limited Liability Companies) with the other half usually an S Corporation. 

 LLC’s continue to be very popular since their becoming possible in Georgia approximately seventeen years ago and continue to be used more than ever before. Due to their ease of formation, the lack of a need for a formal Board of Directors, and that there is no requirement for owner/active members to take a salary, the administrative burden of operating an LLC makes it an attractive choice when considering corporate structure. 

However, an S Corporation has the added advantage of not requiring FICA/Medicaid taxes to be paid on shareholder distributions as long as a fair and reasonable salary is paid. As your results and how you plan to utilize your corporate entity can vary substantially from that of others, be sure to consult with your CPA for all of the possible tax/operational consequences which you will be facing as your proceed with your business. 

To read more and see which entity type is best for you visit http://www.hiscpa.com/article2.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, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

HisCPA: A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Cumming, Hamilton Mill, Cheatu Elan, Winder, Gainesville, Hart County, Dunwoody, Grayson, Alpharetta, Dunwoody, Sandy Springs and Tucker as an Award Winning CPA.

Duluth/Gwinnett CPA: Getting Started with a New CPA does not have to be unduly complicated. The below is a sample letter we would send to a client to get started on their CPA tax needs. Be sure you work with a CPA who has your best financial and tax interests at heart:

Just following up on getting started.

I suggest you go ahead and forward copies of your last corporate and personal income tax returns along with you year to date financial statements.

If we need to also get you incorporated let me know and I will forward to you information so that you might make the right entity selection when incorporating in Georgia.

I look forward to serving as your CPA for many years to come.

Choosing an Entity Type for Your New Georgia Business
Your initial choice of entity is perhaps the most important tax, financial and legal decision you might ever reach. Being well versed in these areas is essential to a wise and prudent decision. Visit http://www.hiscpa.com/article2.html

Tax Effects of Entity Choice when Incorporating in Georgia
Carefully considering the tax effects of your entity choice is essential to getting your business off on the right foot. Being careful to avoid, if at all possible, the double taxation of C Corporations and then selecting the right entity for your business from both a tax and legal perspective is critical. See http://www.hiscpa.com/article6.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, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

www.HisCPA.com  A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Cumming, Dunwoody, Alpharetta, Dunwoody, Sandy Springs and Tucker as a Faith Based CPA Firm

Avoiding Tax Problems…Planning Ahead can Save Unnecessary Penalties & Interest

By planning ahead you can avoid having unnecessary tax fines and penalties from being assessed. Being sure to pay your taxes as you go will enable you to properly budget your living expenses while also being sure to legally maintain the tax and legal responsibilities of your business.

If you show up at year end hoping for your tax professional to work a miracle you are expecting the impossible. However, if you show up at your CPA’s door well before the year is over and before the tax clock has wound down, you CPA can help you not only plan but help ensure that you have legally claimed all of your tax deductions.

During these meetings you can also set up and fund, if you do it early enough, retirement plans for you and your employees so as to maximize your retirement benefits in the future and your tax deductions today. Planning and not compliance are one of the best investments you will make in your financial future.

Choosing an Entity Type for Your New Georgia Business
Your initial choice of entity is perhaps the most important tax, financial and legal decision you might ever reach. Being well versed in these areas is essential to a wise and prudent decision. Visit http://www.hiscpa.com/article2.html

Tax Effects of Entity Choice when Incorporating in Georgia
Carefully considering the tax effects of your entity choice is essential to getting your business off on the right foot. Being careful to avoid, if at all possible, the double taxation of C Corporations and then selecting the right entity for your business from both a tax and legal perspective is critical. See http://www.hiscpa.com/article6.html

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

www.HisCPA.com  A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Cumming, Dunwoody, Alpharetta, Dunwoody, Sandy Springs and Tucker as a Faith Based CPA Firm

Quotable Quotes from John Dillard CPA on Incorporating Your Business in Georgia

“As a Gwinnett CPA for decades we have helped hundreds of Gwinnett business owners select the right entity when incorporating their Georgia business. Contact us today to take advantage of our free initial consultation.” — John Dillard CPA, President of His CPA PC; A Duluth GA CPA Firm

“All too often we have watched Gwinnett and Metro Atlanta Business owners rush to incorporate not understanding that tax and operational implications of the varying entity types. Be sure you sit down with a CPA first before you look to get your business Incorporated in Georgia.” — John Dillard CPA, An Award Winning Metro Atlanta CPA

“As a Gwinnett CPA we have too often come in after a new business has been incorporated without them first consulting with a CPA to understand the many varied tax and legal responsibilities of the varying entities. Be sure you sit down with a CPA who is well versed in how different entities are taxed before Incorporating in Georgia and to know which state to best incorporate in.”  — John Dillard CPA of His CPA PC; A Faith Based Gwinnett CPA Firm.

“Filing your articles of incorporation with the Georgia Secretary of State’s office often appears to be “all you have to do” to get incorporated in Georgia but nothing could be further from the truth. Be sure to talk with us first before incorporating so that you might choose the right entity for your new Georgia business.” — Duluth/Gwinnett CPA John Dillard CPA, President

“Leadership 101: Knowing who is in charge and how they are lead are essential to the running of a country, a war, a battle, a family, a church and your business. Failing to prepare for essential business planning issues will do much to impair your way to success. Great authors over the years from John Maxwell, Zig Ziglar, and Lou Holtz have written dynamic books and articles on how to lead with both your heart and your mind. Choosing who will lead your corporation at all levels is essential to goal congruence and obtaining your overall business mission, profits and goals. Keeping these ideas in mind will do much to help ensure your newly incorporated Georgia business is successful.” — Gwinnett CPA, John Dillard CPA

“Though many file their initial Georgia Articles of Incorporation correctly, frequently as Paul Harvey would say “the rest of the story” is overlooked and missed. Being sure that you understand the big picture will help ensure your new business gets off on the right foot and does not fail in maintaining its responsibilities as a Georgia corporation. Keeping these ideas in mind will help ensure your newly incorporated business is in compliance with Georgia regulations.”  — Gwinnett CPA, John Dillard CPA

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, Dunwoody, Sandy Springs & Tucker as an Award Winning CPA

Questions to Ask a CPA When Starting a New Business

If you are a new Gwinnett Entrepreneur you will want to find a Gwinnett CPA who is well versed in small business start-ups. Before you hire a new CPA be sure to do a thorough investigation about who they are, what they do and their reputation in the business community.

What are the average size of your clients? Do you work exclusively with for profit business owners?

What are you business philosophies? Are you more kindred to a caretaker or a Virtual CFO?

Do you have a network of business associates in financing, mortgages, banking, lawyers etc. who are readily available and are tops in their field?

Did you graduate with honors? Have you won awards in your industry? Are you well known in the business community? Are you published? Are you active in the community?

Do you see your clients or as partners working toward a common goal of “business success? Do you return calls within just a few hours? Do your complete returns/tax work within just a few days?

What type of services do your offer? How are you different from your competition? Are you there when I need you? Are you readily assessable? Are your fees competitive?

Do you accept the status quo? Are you always seeking to better your performance? Are you always seeking to better your services? Do you consistently seek out ways to keep my tax bill as low as legally possible?

Finding a CPA is essential. Be sure you take the time to find who practices excellence at each and every level of their business.

Duluth Income Tax Preparation

Duluth Corporate & Personal Income Taxes

Duluth Financial Statements

Duluth IRS Representation, Back Taxes & Offer in Compromise

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Alpharetta, Suwanee, Lawrenceville, Norcross, Atlanta, Gwinnett, North Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Snellville, Lilburn & Grayson as an Award Winning CPA

www.HisCPA.com  Incorporating in Georgia, Setting up an LLC in Georgia, Setting up an S Corporation in Georgia, Georgia Entity Selection, Converting Your GA LLC to an S Corporation, Converting Your GA C Corporation to an S Corporation, GA LLC, GA S Corporation and Converting Your Georgia Business to an S Corporation