Incorporating a sole proprietor, or having an LLC make an S election, may save significant taxes for the one-person business. Limited Liability Companies (LLC's) and regular C corporations may elect to be treated as S Corporations for income tax purposes.
YOU ARE PAYING TOO MUCH IN TAXES AND YOU DON'T EVEN KNOW IT !
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If you think that your present tax accountant (if you have one) is providing you with all of the tax planning advice you need. You should think again.
The typical tax preparer, and even the average CPA, lacks the graduate tax education and/or professional experience needed to advise you of all the tax-saving strategies available to the one-person business. Most tax preparers unfortunately spend their time just recording the past and filling out tax forms. You are therefore the person who is ultimately responsible for reducing your own tax burden.
* Determine whether your business should incorporate, or if your LLC should make an election to be taxed as either a regular C corporation or an S corporation.
* Save self-employment tax (Social Security Tax, Medicare Tax and Obamacare Tax) by paying yourself a low, but reasonable, salary from your S corporation .
* Contribute up to 100% of your earnings, and/or your employee-spouse's earnings, to a one-person 401k plan.
* Avoid making "quarterly" estimated tax payments, and incurring penalties, by having the "safe harbor" amount of taxes withheld from your yearly salary.
* Consider a Section 444 fiscal year-end election to possibly defer taxes and improve personal tax planning.
CLICK HERE for "TAX STRATEGIES for the ONE-PERSON BUSINESS"
ABOUT THE AUTHOR -
Chris Inglese is a Certified Public Accountant with over 35 years of professional experience with the international accounting firm of Deloitte (formerly Touche Ross & Co) and his own firm, Christopher J. Inglese, P.C. He holds a Masters of Science degree in Taxation (from the American University) and a Bachelors of Science degree in Commerce – Accounting (from the University of Virginia’s McIntireSchool of Commerce). A member of the American Institute of CPAs and the VA Society of CPAs. Mr. Inglese has also authored Tax Checkup for S Corporation Owners (out of print) and the Day Trader Tax Guide.
As a one-person business himself, Chris Inglese has studied the various tax strategies available to the smallest of firms. He gives self-employed individuals the opportunity to benefit from his education and experience through his TAX CHECKUP service. During a TAX CHECKUP, Mr. Inglese uses his proprietary tax planning checklist (included in the Tax Strategies for the One-Person Business book), and reviews current and prior year tax returns, in an attempt to uncover any tax refund opportunities and/or tax-saving ideas. The TAX CHECKUP service is offered from May through December, and costs only $495 (based on up to two hours of professional service). One-person business owners, who are interested in legally avoiding taxes, may contact Chris Inglese at(703) 847-8710 .