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 Read more about What is the difference between C Corp and S Corp[…]

Tax

Married couple work as independent contractors form an LLC?

Question: Married couple live in California, both work as independent contractors, should they form a Delaware LLC and elect to be taxed as a corporation since the corporate tax rate is only 15% on the first $50,000 of profit. Answer by Wray Rives CPA CGMA: First off there is no scenario where just forming an Read more about Married couple work as independent contractors form an LLC?[…]

How important is it to file 83(b) election S-Corp?

My answer to How important is it to file a Section 83(b) election for an S-Corp? Answer by Wray Rives CPA CGMA: As to the question about making an 83(b) election, it is very critical that you understand the consequences of making the election for restricted stock in an S Corp, but if you should Read more about How important is it to file 83(b) election S-Corp?[…]

Independent Contractor vs Employee the Pros & Cons

Ok, the title of this post was to get you to read it, so first off I will say that it is really a matter of pros and cons, because you are not free to choose how you want to pay workers. There are laws that you should follow when classifying workers as either employees Read more about Independent Contractor vs Employee the Pros & Cons[…]

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[…]

Tax Tips for the Self-employed

There are many benefits that come from being your own boss. If you work for yourself, as an independent contractor, or you carry on a trade or business as a sole proprietor, you are generally considered to be self-employed. Here are six key points the IRS would like you to know about self-employment and self- Read more about Tax Tips for the Self-employed[…]