Watson CPA Group - Knowledgebase

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Owner Only 401k Plans in MMLLC Environment
By Jason Watson (Google+) Posted June 2, 2019 What if the structure did not have any employees and only had owners? This changes the rules a bit since now discrimination, or specifically, exclusions are allowed within 401k plan documents. Let’s also go back to our example and say that Fred...
02 Jun, 2019 Views: 0 Comments: 0
Accounting Method
By Jason Watson (Google+) Posted June 2, 2019 Many business owners ask if they should be cash or accrual when selecting the accounting method within their accounting package. Simply put, the accrual-basis method recognizes revenue when earned (not when paid) and recognizes expenses when...
02 Jun, 2019 Views: 0 Comments: 0
Minimize Tax or Maximize Value (Economic Benefit)
By Jason Watson (Google+) Posted June 2, 2019 As mentioned elsewhere in this book, we encourage people to focus on building wealth and if they can save taxes along the way, then that is just icing on the cake. What do we mean here? Often we see business owners who want to minimize their tax...
02 Jun, 2019 Views: 0 Comments: 0
Parent-Child Arrangement (Income Flows “Down”)
By Jason Watson (Google+) Posted June 2, 2019 Another thought along these lines involves a multi-member LLC where you and another non-spouse partner are the members. Later in a later chapter you’ll learn that one of the limitations of an S corporation is that distributions must be made in the...
02 Jun, 2019 Views: 0 Comments: 0
ESOPs and S Corporations
By Jason Watson (Google+) Posted June 2, 2019 What happens when you have an S corporation but want to implement an ESOP? First, what the heck is an ESOP. According to a May 2017 article in the Journal of Accountancy- ESOPs were created by the Employee Retirement Income Security Act of 1974...
02 Jun, 2019 Views: 0 Comments: 0
Another Employee Ownership Situation
By Jason Watson (Google+) Posted June 2, 2019 The Watson CPA Group is currently exploring the poor man’s version of an ESOP where our primary entity is a C corporation which has a robust shareholder agreement for buying and selling of shares. Why do you need a shareholder agreement? If you own...
02 Jun, 2019 Views: 0 Comments: 0
Section 199A Recap
By Jason Watson (Google+) Posted November 23, 2018 Section 199A Comparison Recap Hopefully you are still with us and not in the fetal position sucking your thumb. To hammer these points home, the Section 199A won’t help everyone and the S corporation still has some shine (although perhaps less...
05 May, 2019 Views: 0 Comments: 0
Electing S-Corp Filing Status, Retroactive for 2018
By Jason Watson (Google+) Posted May 5, 2019 Yes, you are able to engage in revisionist history and retro activate your S Corporation election to January 1, 2018, and have your income avoid a large chunk of self-employment taxes. Which year? Good question, and Yes, of course, it depends. First...
05 May, 2019 Views: 0 Comments: 0
S Corp Hard Money Facts, Net Savings
By Jason Watson (Google+) Posted May 5, 2019 Sales pitch alert! The Watson CPA Group specializes in S corporations which have a small number of shareholders, and often just a one-person show. Did you know that 95% of all S Corps have only one shareholder, and 99% of all S Corps have three or...
05 May, 2019 Views: 0 Comments: 0
Watson CPA Group Fee Structure
By Jason Watson (Google+) Posted May 5, 2019 The Watson CPA Group prides itself in being transparent and having a simple fee structure. Most business services and tax returns will fit into the fees described below. Sure, there's always the outlier or the unusual situation, but the following...
05 May, 2019 Views: 0 Comments: 0