Tuesday, June 1, 2010
There are standard deductions and there are itemized deductions. These include your mortgage interest and all sorts of other things you might not have even thought of. Ask your tax professional or CPA. Or ask us! Check out our FAQ in our soon-to-come revamped site.
Saturday, May 8, 2010
Your business is not too small to enjoy the benefits 0f incorporating.
By incorporating your business and electing the sub-chapter S status, you will be able to reduce your income tax by passing the corporate annual profits and losses directly to you, the corporation's shareholder, as a taxable dividend not subject to the social security tax.
For example: An S corporation reporting an annual profit of $75,000 would save you about $11,000 in social security tax. A sole proprietorship or a partnership does not have this benefit.
Other benefits of incorporating include providing limited liability protection to your personal assets, entitling you to more liberal insurance and pension plans, and reducing the potential of an IRS audit.
We can set up your corporation without any interruption of your business activity. Our fee to set up your California Corporation, including minute book and seal, starts at $395.00.