Our CPA Blog

Topics that help our customers.

What does it mean to become an "S-corp" vs. an "LLC"? What are the practical differences?

Aug 27,2017 at 05:12 am

Firstly, its very important to learn about entity structure & tax classification which are 2 different elements outlined below. 

 

 1) Choosing the right entity structure - LLC/INC

 2) Choosing the correct tax classification- sole proprietorship ( 1 member LLC), P...

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Do I need to file taxes if my LLC made no money and nor did I personally?

Aug 27,2017 at 05:09 am

My response is assuming you are a single member LLC taxed as a sole proprietor. If so, then as you are registered in CA you need to pay the franchise tax even if you did not generate any profit.

Regarding federal filing, many businesses at start-up phase generate losses. As long as you hav...

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Startup Advice and Strategy: What should startup founders be aware of before incorporating?

Aug 27,2017 at 05:08 am

At a high level, your CPA or business advisor should be able to walk you through some basic information on the choice of business structure and the tax implications. In addition to this, a basic course that outlines financial management would be a plus to the founders.

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How difficult is it to prepare a tax return for an S corp?

Aug 27,2017 at 05:07 am

I would certainly not recommend DIY for S Corporation. There are few key items that a professional can handle very easily. Payroll accounting, owner employee compensation etc can get a bit complex.

If not handled correctly, you will receive notices from federal and state agencies which wil...

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What type of LLC does an independent contracting physician need to create?

Aug 27,2017 at 05:05 am

It really depends on your projected income for the next 3 years.

The 2 popular ones for Physicians are usually Sole Proprietor i.e Single member LLC. Under this tax classification, all income and losses will flow through the LLC. So, net business income/loss will reflect on your 1040 Indiv...

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