A corporate tax is levied against profits often including capital gains of a company or association. Earnings are generally calculated by deducting expenses from gross revenue.
No matter what the entity type, Whyte & Associates can prepare your business taxes. The business tax returns that we prepare annually are:
The above are necessary forms that need to be filed with the IRS. Along with filing the Federal tax return, we will prepare the necessary state return to go along with your Federal return.
A business tax return is generated from a good set of financial statements. The basic accounting functions might seem simple at a glance, but they can be far from it. We strongly encourage our clients to provide us financial statements generated by professionals. It is too often that we see clients overpaying in taxes often more than the cost of professionally prepared financial statements.
Even though we encourage professional accounting, there are exceptions when we are able to work from self-prepared accounting. We will make that determination upon our meeting. The following will be needed during our meeting:
With tax laws and regulations changing so quickly from year to year, it is key to find a preparer who does the due diligence to make sure you stay compliant. The best part about the Whyte & Associates team is that we are not just here to push out tax returns in bulk; we take pride in reviewing your business tax returns so that we can advise you on how to save the most taxes for the business and for you as the owner.
You are already taking a tremendous step by partnering with us. However, we encourage you to also be proactive when communicating with us about major changes to your business. These changes can affect your available tax-saving opportunities and help us recommend strategies to minimize your tax burden.
Contact us right away if you are making significant equipment purchases or are in hiring mode. You should also reach out to us if you are considering any changes in your business’s structure. This aspect of your business has a significant impact on your tax liability.
In general, S-Corps represent the most tax-efficient structure, as they allow for pass-through taxation. This contrasts with C-Corps, which are subject to double taxation. LLCs are also primarily taxed as pass-through entities, with profits or losses passing through to members who report them on their personal returns. We are happy to discuss the many considerations involved in determining the best structure for your evolving business.
Do not wait for filing deadlines to approach. Think beyond annual meetings. We like to meet with our clients early and often. For instance, quarterly advisory meetings are a great opportunity to review financial performance and adjust estimated payments accordingly.
A good rule of thumb is to account for those expenses that are “ordinary and necessary” for you to operate your business. Some of the most common deductions include costs for office supplies, furnishings, and technology, personnel-related costs such as salaries and bonuses, and vehicle and travel expenses.
Yes. You can write off certain eligible expenses, but only in the year your business officially commences. These deductions must be claimed after your business is officially active, too, which means you have all the pieces in place to turn a profit (a website, staff, an open-for-business office, etc.).
You can deduct up to $5,000 in your first, active year for expenses associated with:
You can also deduct up to $5,000 in legal fees and other organizational costs, such as incorporating your business.
A failure to report all income or discrepancies between reported income and submitted records is among the fastest ways to trigger an audit. Other red flags include claiming excessive or unusual deductions, recurring business losses, significant changes in expenses, and misclassifying employees as independent contractors to minimize payroll taxes. By partnering with us, you minimize these risks and have Enrolled Agents on staff to navigate the audit process should you receive a notice.
We help you avoid errors, such as failing to file a penalty. For each month that your return is overdue, you will be fined 5% of the total unpaid tax (up to 25%). For accuracy-related penalties, you are generally fined 20% of the underpayment amount.
Anyone who is a sole proprietor, gig worker, or independent contractor netting at least $400 in earnings must adhere to this “pay-as-you-go” system to cover income/self-employment taxes. Partners or LLC members and S-Corp shareholders should also pay quarterly to avoid underpayment penalties and support sound business planning.
