Services
Accounting/Bookkeeping
If your business does not currently have accounting staff or outgrowing its current bookkeeping system, we can provide comprehensive services to ensure the smooth operation of the financial side of your business. As your business needs grow and change, we can provide input and planning assistance to make sure your accounting and financial systems keep pace with your growth.
Audits (Non-Certified), Reviews, and Compilations
Our audit, review and compilation capabilities are a core part of our services. We tailor each process to the unique needs of your business. We deliver financial statements and reports that are clear, concise and acceptable to all outside parties and that can provide information and insight to help you run your business more effectively. We will work closely with you and your key employees to develop and execute a plan to complete this work by minimizing employee time spent on the process and without disrupting operations.
Business Consulting
As a true business partner, we are available to help you deal with any business problem or opportunity. We stand ready to engage in business consulting projects to help you make the right decisions for the future of your business. Whether you face questions related to expanding, selling or restructuring your business, we have the necessary business acumen and analytical capabilities to help you make the right decisions.
Business Entity Selection and Incorporation
The business entity—LLP, LLC, sole proprietorship, partnership, corporation, etc.— that you select for your business has enormous financial and tax implications. It is important that you make the right decision. We can explain each choice and its implications. As your business grows and changes, the type of business entity you choose may need to change also.
To create a Corporation, or C Corporation, the proper formation documents, typically called the articles of incorporation or certificate of incorporation, must be filed with the appropriate state agency and the necessary state filing fees paid and also apply with the IRS.
Taxation implications are usually a significant consideration when deciding which corporate structure to choose. Shareholders of Corporations may experience double taxation, which simply means that corporate profits are taxed at both the entity and individual levels. Profits of the business are reported and taxed at the entity level first. Then if the corporation distributes any portion of the remaining profits to shareholders in the form of dividends, the shareholders must report the dividend as personal income and pay taxes on it at the individual level.
If a person is an alien individual, they can open a corporation. Individuals must have a taxpayer identification number by filing a W-7 form. This form is used by alien individuals who are not eligible to obtain a social security number (SSN) and apply for an IRS individual taxpayer identification number (ITIN).
S Corporation
- Shareholders are typically not personally responsible for the depts and liabilities of the business.
- S Corporations have unlimited life extending beyond the illness or death of owners.
- Certain business expenses may be tax-deductible.
- Additional capital can be raised by selling shares of the corporation’s stock.
- The IRS imposes restrictions on shareholder guidelines: shareholders must number fewer than 75; must be individuals, estates, or certain qualified trusts; and cannot be non-resident aliens.
- S Corporations can have only one class of stock (disregarding voting rights).
- All shareholders must consent in writing to the S Corp. election.
- S Corporations are more expensive to form than sole proprietorships & partnerships and face ongoing, state-imposed filing requirements and fees.
- A few states do require a state-level filing in order for the entity’s S corporation status to be recognized by the state.
- S Corporations face ongoing corporate formalities, such as holding and properly documenting annual meetings of directors and shareholders.
Corporation
- Corporations can have an unlimited number of shareholders.
- Ownership is easily transferable through the sale of stock.
- Corporations have unlimited life extending beyond the illness or death of owners.
- Certain business expenses may be tax-deductible.
- Additional capital can be raised by selling shares of the corporation’s stock.
- Double taxation of profits may occur.
- Corporations are more expensive to form than sole proprietorships and partnerships and face ongoing state-imposed filing requirements and fees.
- Corporations face ongoing corporate formalities, such as holding and properly documenting annual meetings of directors and shareholders.
Limited Liability Corporation
- LLCs generally have no restrictions on the number of members allowed.
- A one person LLC must file a 8832 form to be recognized as a Single Person Limited Liability Company and then approved.
- Members have flexibility in structuring the management of the company.
- LLCs can file a 1065 Partnership Return (one or more partners), an 1120-S Corporate Return with S Corporate Status by filing a 2553 or Schedule C on a 1040 for a one person LLC.
- LLCs filing as an S corporation have better tax breaks on corporate profits earned.
- LLCs do not pay social security tax, self-employment tax or medicare tax on corporate earnings, known as passive income, reported on the K-1 form by its shareholders. LLCs pay these taxes just on the payroll paid to its shareholders on W-2 forms, known as earned income or wages.
- LLCs filing a Schedule C form pay social security tax and medicare (self-employment tax) on wages earned.
- The LLC does not require as much annual paperwork or have as many formalities as C or S corporation.
- LLCs are more expensive to form than sole proprietorships.
- Ownership is typically more difficult to transfer than with a corporation.
Sole Proprietor
- Most states do not impose a fee for the privilege of existing.
- No separate tax filing for the business is required. Instead profits or losses of the business are reported on the owner’s tax return.
- The owner is personally responsible for the debts and liabilities of the business.
- Obtaining capital, through such means as a bank loan, can be more difficult as lending institutions often require a more formal entity structure.
A Partnership
- A general partnership is a “pass through” entity, meaning the partners — and not the partnership — are taxed individually. That means that the partnership return is merely an information return, telling the IRS about the partnership’s income and expenses; the partners pay tax on their share of partnership income on their personal returns.
- A business potentially can reach new heights when complementary skill sets are gathered under a partnership. A partnership can also serve as an incentive to attract new employees if they realize they may become partners at some point.
- Perhaps the biggest drawback is that each partner is jointly and severally liable for the debts and obligations of the business. A creditor can sue a single partner for all of the partnership debt owed and this partner is responsible for paying the full amount to the creditor. Once a partner pays off the creditor, he or she can seek “contribution” from the other partner(s).
- All your personal assets are potentially at risk. You may be better off incorporating your business or forming a limited liability company (LLC) rather than structuring it as a partnership. Incorporating can help shield personal assets if your business is sued, or if your business partner is sued.
- Any asset you contribute to the partnership is jointly owned by you and your partners, and there’s no assurance you will get it back when the partnership is dissolved.
- Profits that a business makes under a partnership must be shared with others.
- Unlike in a corporation, you may not be able to deduct some employee benefits from business income on tax returns.
- Any time you share decision-making responsibilities with other parties; there is the potential for disagreements. Partners are co-owners and that means they share management and financial control over the business.
Estate & Trust Tax Preparation
Estate matters affect everyone. By taking proactive steps today, you can ease the way for your heirs during a very difficult time. We can work with your legal counsel to help you to structure your estate and trusts to minimize taxes and ensure the smooth transition to your heirs. We are available to handle all estate and trust tax-related matters.
Financial Analysis
When a business is able to undertake strong financial analysis, it opens up new opportunities to improve management, planning and decision making. Financial analysis provides the numbers to support, reject or contemplate a course of action. Prospective analysis can show how situations may evolve under various scenarios, providing a new dimension to decision making. We are ready to provide this type of financial analysis to support the continued prosperity of your business.
Financial Education and Assistance for the Elderly
With years of experience, we can help try to take the burden off of you or a love one. We offer a bill pay and organization service and can also serve as Power of Attorney or as Personal Representative, if needed. If you or your loved one is a U.S. Veteran, we can help try for approval for Veterans Elder Care benefits. Also, if Financial Assistance is needed, we can help try for approval for Medicaid benefits.
Financial Statements
Financial statements are an important tool for management decision making. Financial statements also represent your business to lenders, partners, potential buyers and other interested parties. We will work closely with your key personnel to develop and finalize accurate and timely financial statements.
IRS Representation
An IRS audit can be an intimidating and complex process. If you or your business face an IRS audit, our Enrolled Agent, Susan Santos Stevens bears years of experience in dealing with tax matters and IRS audit procedures to ensure that you are properly represented when dealing with the IRS and other tax authorities.
Payroll Services
Constantly changing federal, state and local laws and tax regulations make payroll management an ongoing challenge for business owners. Our payroll services professionals are well versed on these laws and regulations. We can proactively alert you to material changes that will affect your business and your employees while also keeping payroll running smoothly no matter how large your business and your employee population become.
Retirement Planning
Retirement planning is critical in these uncertain times. Whether you are developing a retirement plan for yourself or choosing a retirement plan to offer to your employees, we can help you evaluate the available options. Our focus is on helping you to make the choice that is most appropriate for your own financial situation. If you are choosing a retirement plan for your business, we will base our recommendations on the unique characteristics of your business and your employee population, as well as the legal and compliance issues related to each type of plan.
Tax Preparation & Planning
Effective tax preparation and planning can help you to minimize your future tax liability. We can help you proactively manage both your personal and your business tax issues, including understanding how upcoming business opportunities impact your tax status and vice versa. Not all tax planning opportunities are readily apparent. By having us on your team, you are more likely to benefit from those opportunities. We understand how the latest federal, state and local tax legislation and other developments affect you and your business and we are constantly identifying new ways to reduce federal, state or local tax liabilities.