What happens with negative K-1 distribution of US S-Corporation?

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 passive Read more about What happens with negative K-1 distribution of US S-Corporation?[…]

Is it worth creating an LLC in Delaware while operating an e-commerce business out of New Jersey? What are the pro’s/cons?

Is it worth creating an LLC in Delaware while operating an e-commerce business out of New Jersey?  Answer by Wray Rives: Should you register you startup LLC e-commerce business in Delaware? If you operate the business in New Jersey, you will still have to register the LLC as doing business in New Jersey and pay Read more about Is it worth creating an LLC in Delaware while operating an e-commerce business out of New Jersey? What are the pro’s/cons?[…]

Transfer pricing of tangible goods between controlled businesses

The Internal Revenue Service has adopted specific regulations to govern how related businesses should determine pricing and allocate profits among related businesses.  This is of particular interest to US businesses that are controlled by non-US taxpayers either directly or through related non-US businesses and which sell goods sourced by the non-US taxpayers into the US Read more about Transfer pricing of tangible goods between controlled businesses[…]

Tax

S-Corp or LLC?

One of the biggest considerations when starting a new business is how that business is going to be organized legally and for tax purposes. There are four different business entity types to consider. Sole Proprietorship -Single individual owner (with the exception that a married couple can also file as a sole proprietorship)  For federal purposes Read more about S-Corp or LLC?[…]