275 7TH Ave 7th floor New York , NY 10001 email@example.com
Chelsea / Lower Manhattan
Daniel Cullinane CPA p 848-250-9587
This tax saving strategy is geared toward a person with two employers, one a w-2 employer and the other a 1099 employer. Typically the 1099 income is recorded on a schedule C of a personal tax return. Our program geared toward maximum tax savings is based upon setting up an SCorp which yields several substantial benefits. Such as
* Protected assets: An S corporation protects the personal assets of its shareholders. Absent an express personal guarantee, a shareholder is not personally responsible for the business debts and liabilities for the business debts and liabilities of the corporation. Creditors cannot pursue the personal assets of the shareholders to pay business debts. In a sole proprietorship or general partnership, owners and the business are legally considered the same, leaving personal assets vulnerable.
* Pass-through taxation: An S corporation does not pay federal taxes at the corporate level. Any business income or loss is "passed through" to shareholders who report it on their personal income tax returns. This means that business losses can offset other income on shareholders' tax returns. This can be extremely helpful in the start up phase of a new business.
* Tax-favorable characterization of income: S corporation shareholders can be employees of the business and draw salaries as employees. They can also receive dividends from the corporation, as well as other distributions that are tax free to the extent of their investment in the corporation. A reasonable characterization of distributions as salary or dividends can help the owner reduce self-employment tax liability, while still generation business and wages paid deductions for the corporation.
* Less likely to be audited.: The IRS targets tax returns with a schedule C. They feel there is a high probity of errors due to them being prepared by individuals or less qualified tax prepares than S Corp. An important benefit often overlooked.
CERTIFIED PUBLIC ACCOUNTANT.
TRIBECA 100 Church St 8th fl New York New York 10004
CHELSEA 275 7th Ave 7th fl, New York New York 10001
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