Watson CPA Group - Knowledgebase

Knowledgebase

LLC and S-Corps (superseded)
Automobiles and LLCs, S Corps (superseded)
*** This KB article grew to a ridiculous length, so it has been chopped up and superseded. Please use the following link to get the information you need *** www.watsoncpagroup.com/kb/Automobiles-and-LLCs-S-Corps_287.html Thank you for your patience! By Jason Watson (Google+) Updated...
02 Jul, 2016 Views: 0 Comments: 0
Estimated Tax Payments, Withholdings Issues for an S-Corp
By Jason Watson (Google+) Posted September 2, 2014 This KB article has been re-written. Please use this link- http://www.watsoncpagroup.com/kb/Estimated-Tax-Payments-Withholdings-Issues_309.html Thanks! Estimated tax payments change as well when you have an S-Corp, especially the first...
02 Jul, 2016 Views: 0 Comments: 0
The Zero Dollar Paycheck
By Jason Watson (Google+) Posted September 2, 2014 This KB article has been re-written. Please use the following link- http://www.watsoncpagroup.com/kb/Cash-Needs-The-Zero-Paycheck_310.html Thanks! Every situation is different, however the backward looking method of determining your...
02 Jul, 2016 Views: 0 Comments: 0
Determining the S-Corp Payroll Amount
By Jason Watson (Google+) Updated September 29, 2014 This KB article has been re-written. Please use the following link- http://www.watsoncpagroup.com/kb/Determining-the-S-Corp-Salary_308.html Thank you! As an S-Corp, you are taking money out of the business in four ways- Source...
02 Jul, 2016 Views: 0 Comments: 0
The S-Corp Grind, Operational Hassles
By Jason Watson (Google+) Updated September 21, 2014 This KB article has been completely re-written. Please use the following link- http://www.watsoncpagroup.com/kb/S-Corp-Grind-Operational-Hassles_304.html Thanks! You’re probably thinking that running an S-Corp adds all kinds of...
02 Jul, 2016 Views: 0 Comments: 0
Should I convert my LLC to an S-Corp (Sub-S Election)?
By Jason Watson (Google+) This KB article has been superseded. Please see our updated articles. Perhaps. Reducing your self-employment taxes is the main reason LLC owners want to convert to an S-Corp. There are some issues such as payroll, corporate tax return requirements and passive...
17 Oct, 2013 Views: 0 Comments: 0
How does an LLC or S-Corp's income affect my taxes?
By Jason Watson (Google+) This KB article has been superseded. Please see our updated articles. It depends. Single-member LLCs are taxed similarly to sole proprietorships, and multi-member LLCs are taxed similarly to partnerships. Since a single-member LLC does not file a corporate tax return...
17 Oct, 2013 Views: 0 Comments: 0
What is an Accountable Plan?
By Jason Watson (Google+) This KB article has been superseded. Please see our updated articles or read the updated Accountable Plan KB article. An Accountable Plan is system of reimbursing employee expenses without having to consider the reimbursements income. A typical response by taxpayers...
17 Oct, 2013 Views: 0 Comments: 0
How do I convert my LLC to an S-Corp?
By Jason Watson (Google+) This KB article has been superseded. Please see our updated articles or read the updated S Corp Election KB article. First you must be eligible- your corporation must be domestic, have 100 or fewer shareholders, have owners who are individuals, estates or exempt...
17 Oct, 2013 Views: 0 Comments: 0
Is there a way to avoid Self-Employment tax?
By Jason Watson (Google+) Posted February 2, 2016 This KB article on self-employment taxes and S-Corp elections has been updated, and we have re-released our SubS.pdf tax article. Here are the links to get you started- Comprehensive Guide to S-Corps in PDF (updated Fall of 2015) Updated KB...
02 Feb, 2016 Views: 0 Comments: 0
Can I call my 1099 ‘other income’ which avoids employment taxes?
By Jason Watson (Google+) This KB article has been updated. Please see our new 1099 as other income article. Maybe. The IRS defines a trade or business as an activity carried on for a livelihood or in good faith to make a profit. IRS Revenue Ruling 58-112 further characterizes a trade or...
17 Oct, 2013 Views: 0 Comments: 0
As a one-person show, should I still form an LLC? An S-Corp?
By Jason Watson (Google+) This KB article has been superseded. Please see our updated articles. Yes. Admittedly we shot down the liability protection argument. We also shot down the LLC in Nevada argument. So what’s left? Lots, actually. An LLC will give you credibility. Vendors and banks...
17 Oct, 2013 Views: 0 Comments: 0
What are the operational hassles of an S-Corp LLC?
By Jason Watson (Google+) This KB article has been superseded. Please see our updated KB article on the operational hassles of an S Corp (sneak peek- there aren't many). Very few. All the things you do now to maintain your financial records remain the same. The only additional requirement is...
17 Oct, 2013 Views: 0 Comments: 0
If the S-Corp taxation is what I ultimately want, should I form an LLC or C-Corp?
By Jason Watson (Google+) This KB article has been superseded. Please see our updated articles. Good question. Each state is different with its requirements for LLCs and C-Corps. C-Corps generally have more red tape and filing requirements than LLCs, but each case is unique. Typically,...
17 Oct, 2013 Views: 0 Comments: 0
Should I form an LLC with my spouse?
By Jason Watson (Google+) This KB article has been superseded. Please see our updated KB article on forming an LLC or S Corp with your spouse. No. Don’t you see enough of each other at the house? All kidding aside, this is not the best idea- as a multi-member LLC you will be required to...
17 Oct, 2013 Views: 0 Comments: 0