Corporations & Formalities
Starting a new business can be exciting and terrifying all at once. Business owners often have questions like which type of business entity should be set up, what are the advantages/disadvantages of each business entity type, how do I go about formalities, and how does one go about calling a meeting with a shareholder or shareholders. Just like everything else in life; there are pluses and minuses to each entity type. We are here to help navigate the options and can run scenarios to assist in your decision making process. The Business Entity Pros and Cons Handout provides an overview of the various entity choices.
What are Meeting Minutes & Importance?
Meeting Minutes are a record of the decisions made at the meeting, the outcome of votes, and which officers were present at the meeting. If your company undergoes an audit by the Internal Revenue Service (IRS), they may ask for the minutes to determine what actions the shareholders have voted for or against. Meetings are important because they protect shareholders from personal liability and prevent a court from penetrating the corporation veil. Each business entity has its own separate meeting requirements, but one thing that is similar between all entities is the need for meeting minutes. To help answer further questions please look at these Corporation Meeting Requirements or contact our office.
- Copyright© 2016 Tax Materials, Inc.
Tax Facts & Figures
As we begin a new year, many people create budgets so they manage their finances well and then refine them through out the year. We are strong advocates of the Dave Ramsey Financial Peace University program and highly recommend it regardless if you are just beginning your journey, trying to work your way out of debt, or are nearing retirement. In that vain, it’s always a good idea to understand the impact taxes have on our cash flow. The U.S. has a graduated federal income tax system at both the corporate and individual level. Social security tax impacts employers and employees. Many states also have an income tax. In general, overall tax rates range from 30-50% of income.
The individual rate is impacted by a number of factors including the following:
–Marital status (residency can impact this)
–Income type (wages, self-employed, ordinary, capital gain)
–Thresholds which determine phase outs of exemptions and itemized deductions as well as other taxes such as Additional Medicare tax and net investment income tax
The 2017 Tax Facts and Figures provides an overview of the federal individual income tax system which can be used to help you create and fine tune your 2017 budget. The 2016 Tax Facts and Figures is a great tool to aid in understanding the final results of the current individual tax returns which are due April 18th.
- Copyright© 2016 Tax Materials, Inc.
Payroll Federal Rates and Limits
Paychex has released a tool that provides federal and state-specific payroll and retirement rate information. With this tool, we are able to provide businesses with federal rates and limits for each state without the business having to look all over the internet for incorrect or outdated information. The best part of this tool is that we can customize it to your specific situation!
Please click here for a Tax Facts Chart which includes California, Florida, Georgia, New Mexico, New York, and Texas. Please contact our office if you would like a customized Chart.
“The wisdom of the prudent is to give thought to their ways, but the folly of fools is deception.” Proverbs 14:8 NIV
- Life Application Study Bible, New International Version. Grand Rapids, MI, Zondervan.
- Scripture taken from the HOLY BIBLE, NEW INTERNATIONAL VERSION©. Copyright © 1973, 1978, 1984 by International Bible Society. Used by permission of Zondervan. All rights reserved.
When presented an investment opportunity or tax transaction; it is always important to make sure it is not running afoul of the IRS’ intent. As momma always said “if it sounds too good to be true, it probably is!” Such is the case of those large tax deductions for charitable contributions of Syndicated Conservative Tax Easements.
The Internal Revenue Service (IRS) and Department of Treasury are aware that promoters are offering investors the possibility of a charitable contribution deduction that equals or exceeds two and one-half times the amount of the investor’s investment. To avoid penalties and fines, taxpayers that have already filed tax returns with these transactions should take appropriate corrective action to ensure that the proper disclosure is made.
To see the official notice from the IRS, please click here.
United States. Internal Revenue Service. Income Tax & Accounting. Listing Notice-Syndicated Conservation Easement Transactions. By Angella L. Warren and Maxine M. Woo-Garcia. N.p.: n.p., n.d. Web. 21 Jan. 2017. <https://www.irs.gov/pub/irs-drop/n-17-10.pdf>.