Tax Advantages of S Corporation

The tax advantages of an S Corporation vs sole proprietorship or partnership is typically in the Self Employment tax. With a sole proprietorship or general partnership, all profits are in one bucket that flows out to the owner for taxation. The owner is taxed for income tax and self employment tax. Income tax depends on Read more about Tax Advantages of S Corporation[…]

What is the difference between C Corp and S Corp

S Corporations and C Corporations have a number of differences. From a tax perspective the key differences are: S Corporations Limited to one class of stock Limited to 100 shareholders All shareholders must be US individuals or certain trusts and estates Generally no income tax at the corporation level Taxable income flows through to the Read more about What is the difference between C Corp and S Corp[…]

How you distribute losses on a K1 for S-Corporation shareholders

How to you distribute losses on a K1 for S-Corporation shareholders? Answer by Wray Rives CPA CGMA:   There are a number of issues and facts to consider with S Corp losses. Not Earned Income/Not Passive Income – The flow through income from an S Corp is not earned income, but it is not necessarily Read more about How you distribute losses on a K1 for S-Corporation shareholders[…]

Accounting for ICO’s-Initial Coin Offerings

Question: How are ICOs treated on the balance sheet of the issuer (i.e. are tokens treated as unearned revenue?)? What are potential ramifications on valuation? ICO’s-Initial Coin Offerings are a new financing tool used by companies. These offerings are un-regulated crypto-currencies and therefore popular with startups that want to raise funds without the high cost Read more about Accounting for ICO’s-Initial Coin Offerings[…]

Update on cloud accounting apps

It is time to update my summary of online/cloud/SaasS bookkeeping apps.   This was originally an answer to a question on Quora about what is the best cloud accounting solution for a small business.  The answer is that the best solution is one that the small business can and will actually use.  There are a Read more about Update on cloud accounting apps[…]