Business Tax
Corporate & Partnership Taxation
Partnerships
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If you have more than one member in your business but have not otherwise incorporated as an S-Corp or C-Corp, you should likely be filing this return. It is reported on Federal Form 1065 and (if applicable) certain state schedules. We support all 50 states. This default classification arises if you apply for an EIN number for a business entity that has more than one owner. This default classification also arises if you have registered an LLC with your state and that LLC has more than one owner, equity partner, or member.
S-Corp
An S-Corp is a small business corporation structure allowed by the IRS. It is reported on Federal Form 1120-S and (if applicable) certain state schedules. We support all 50 states. This is not a default classification – rather, you must apply for it and be approved by the IRS. The appeal of this classification is that it allows for decreased self-employment taxes on your individual return. These tax savings may be substantial, depending on the annual net income of your business. Please contact us for more details or to file your annual return.
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C-Corps
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A C-Corp is a taxable entity that pays taxes in its own right. It is reported on Federal Form 1120 and (if applicable) certain state schedules. We support all 50 states. This structure is the default classification you must file with the IRS after you file as a corporation with your state or after registering your EIN as a corporation with the IRS. The C-Corp structure allows many shareholders and is the common classification for many Delaware startups and larger businesses.
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A Comment on LLCs
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An LLC often has state filing requirements. However, for federal purposes, you would be filing your LLC taxes on one of two forms: From 1040 Schedule C or Form 1065. If you are the only owner, partner, or member of your LLC, then you would report on Federal Form 1040 Schedule C. If you have more than one owner, partner, or member of the business, then you would report on Form 1065, unless you have specifically incorporated as an S-Corp or other type of entity.
LLC Taxation
How are LLCs taxed and what forms do you need to file?
Below is a brief discussion on the three most common formats:
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LLC taxed as Sole Proprietorship
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If you are the only owner, member, or equity partner of your LLC, then you would be filing your LLC business numbers on from 1040, Schedule C. This is a component of your individual tax return and is not necessarily a separate return at the federal level, although it does involve separate schedules. On the state side, you may or may not have an annual reporting requirement or separate form to submit, depending on your state.
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LLC taxed as Partnership
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If your LLC has more than one owner, partner, or member, you would be filing as a Partnership on Federal Form 1065 and any applicable state forms. The state may also have an additional LLC reporting requirement. The 1065 return is a separate return altogether that will generate K-1s, which must then be input into each owner’s individual return. We will be happy to assist with both your partnership and individual returns, if necessary. There are also very specific tax strategies to keep in mind.
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LLC taxed as an S-Corp
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The S-Corp classification must be applied for with the IRS. The purpose of converting to an S-Corp is to take advantage of decreased self-employment taxes. This is the primary reason why persons choose the S-Corp structure. In order to take advantage of this tax strategy, an S-Corp election must be filed and approved by the IRS based on specific terms. Please contact us if you need assistance with this.
Property Management Accounting
Our firm has extensive experience in the residential real estate markets. Services include management of any and all accounting tasks related to property management, such as property taxes, maintenance of escrow accounts, AP/AR, capital improvements budgeting, line of credit analysis, repairs and maintenance, budgeting, and working with the board of directors.
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Commercial real estate
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We provide the full scope of accounting services required for private equity funds, hedge funds, and individuals that have invested in commercial real estate. This includes office, warehouse, retail, industrial, etc.
Capital gains from home sale
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You can exclude up to $500,000 in capital gains from the sale of a primary residence. For rental properties, you can defer the entire capital gain by using a 1031 exchange. Please contact us for information on either of these exclusions.
Taxation of domestic & international rental properties
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Many of our clients own a portfolio of rental properties. We are happy to explain how you can use depreciation to minimize or eliminate taxable income. We will also help you understand how passive un-allowed activity losses accumulating on IRS from 8582 can create a windfall tax deduction in future years.
Non Profit Accounting
Accounting Services for Non Profit Organizations
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Annual tax returns
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Each year, your non-profit organization must file one of several types of forms, most often the IRS 990 or 990EZ and related disclosures. We are happy to assist you with this type of filing. The complexity here may revolve around revenue types you have and the overall details of your organization.
Regardless of the mission of your nonprofit, we are happy to file these forms for you. Non profit returns are due on May 15th of each year (for most types of organizations), however, please do contact us as early in the season as possible. Please make sure to have your books ready, which leads me to the next topic.
Monthly bookkeeping services
Many non-profits, once they reach a certain size, may have an entire finance team, complete with a controller, senior accountant, and assistant. However, some organizations (large and small) outsource this function to us.
Bookkeeping is normally completed monthly so we can stay on top of the expenses and revenues in real time. This allows us to properly categorize items while memory is still fresh & we can ask questions.
However, if you are in a situation where your books have not been completed for a whole year, or multiple years, we are happy to clean these up for you. Please contact us below for either ongoing monthly bookkeeping or for catchup/cleanup work.
Annual Financial Statement Audits, Reviews, and/or compilations
Many organizations are required to complete an annual audit or review. Some organizations only require a compilation. These are attestation services that are useful for gauging the reliability of management’s financial statements.
Most audits for nonprofit organizations can take several weeks, so contact us as early as possible for this requirement. We also have expedited services available if necessary, however, certain elements of the audit process may require 3rd party confirmations, the timeline of which may be out of your control, so my recommendation is to start as early as possible.
Entity formation
We are asked to form entities with the state quite often as well as obtain non-profit standing with the IRS. Remember, even though you created a non-profit corporation with your state, that does not mean you automatically have IRS non-profit standing. IRS approval requires complex paperwork, so contact us if you needed assistance obtaining your status. We support all statuses available, such as 501(c)3 and social clubs/societies.
Issues surrounding good standing status with the state
We are frequently asked to restore good standing or catch up on missing filings for state purposes. These situations often lead to your entity being in poor standing with the state or having their status withdrawn. If you need assistance with this, just contact us & we will clear it up for you.