S Corp and LLC tax and liability risks
Business owners do not enjoy paying taxes. Okay, no one enjoys paying taxes.
The Rules for operating a business today are complex and hazardous. NOT COMPLYING with them can cost you thousands.
You may have formed an LLC or a corporation with the understanding that your business structure would save you money in taxes and protect you from lawsuits or creditors. However, your business structure WILL NOT PROTECT YOU, if you are not in compliance with the State law regulating the type of entity structure that you have chosen. The courts consistently rule that if you are not acting like a corporation or LLC, then you are NOT one.
S Corp and LLC tax and liability risks
Compliance is an area that you can almost guarantee that business owners with an S Corp or LLC are not doing correctly, since only about two percent of small corporations are in compliance.
On a daily basis, you are probably violating some regulation without knowing it. Not following federal and state regulations can be costly. For example, if you are not in compliance with State law:
- It may cost you thousands of dollars in self-employment tax if the IRS reclassifies your corporation or LLC as a partnership or sole proprietorship.
- Your tax-favored fringe benefits may be lost, costing you even more money.
- Your corporation or LLC may lose its legal standing in the State barring you from defending itself or bringing suit for damages against another.
- Your corporate or LLC contracts may be deemed invalid allowing others to get out of their obligations to your company.
- You could lose the asset protection afforded a corporation or LLC, thereby subjecting your home and personal assets to liens and seizures.
- You may be subject to disciplinary actions from regulators for not following the Rules and/or incur penalties for not filing required documents in a timely manner.
Manage your S Corp and LLC tax and liability risks
The good news is that to help manage your corporation or LLC and be in compliance, the team at Incompass Tax, Estate & Business Solutions, Sacramento, CA have put together their Biz Tax & Compliance Coaching Program.
The benefits to you are that this program takes you out of the burden of staying up to date on the ever changing rules and regulations so you can focus on what you do best; successfully running your business.
Plus the good news is that this program saves you money on taxes.
Benefits of the Biz Tax & Compliance Coaching Program
Time is our most precious asset be it in our business or spending it with family and/or friends. Here are some of the areas their program covers by saving you time so you don’t have to waste it staying on top of the constant changes to tax and regulatory filings.
- On-going tax planning throughout the year
- Correct documentation to protect tax benefits against an IRS challenge
- Structures and Agreements required to maximize tax-favored fringe benefits
- Risk Management to properly protect your business and personal assets
- Business development, marketing and networking for success
- Avoiding costly penalties with contractors and misclassified employees
- The dos, the don’ts and the benefits when hiring family members
- Employees, labor law, HR issues; how to protect yourself from liability
- Keeping your corporate Record Book current and how it affects everything else
- Filing the Statement of Information with the Secretary of State each year
- Annual Meetings, Special Meetings and Resolutions for corporations or LLCs
- Monthly contact to discuss scores of actions needing a Resolution or recording
- Serving as your entity’s Agent for Service of Process, if applicable
- Your Corporate or LLC docs are digitally backed up and stored in the cloud, accessible to read or download 24/7
- Unlimited access (almost) by email for your business questions
- Live classroom and interaction with business specialists, when applicable
- E-Newsletters for timely articles, information, alerts, updates and more….
Incompass Tax, Estate & Business Solutions, Sacramento, CA offers the above service on a monthly basis at $50 per month. That is, a simple monthly fee covers the above benefits plus you can email follow up questions to make sure everything is heading in the right direction or if you need additional information.
In addition to the above, you will receive periodic educational e-mailings. Each one will focus on one major idea for your business and provide in-depth analysis of that topic.
And here’s the good news. The monthly subscription is tax deductible. That is, not only will this program save you on the amount of tax you will have to pay, the cost of the program monthly subscription fee is tax deductible.
There are different requirements to start the program, depending on the status of your corporation or LLC. Non-corporate businesses can begin immediately. Availability to corporations can begin only after annual compliance is brought current, such as, after Formation Meeting or after Annual Meeting.
If you have questions about how to bring your corporation or LLC into current compliance, give Randy, Mark or Warren a call at Incompass Tax, Estate & Business Solutions, Sacramento, CA on (916) 974-9393 or visit their website: www.April15th.com
If you would like more information about selling a business, buying a business, buying a franchise or a related service such as valuing a business, please visit my webpage Services and choose from the drop down menu the information you would like.
For more immediate help, you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.