Category Archives: S-Corporations

Four Facts About S-Corporation Distributions

sedona

Your LLC is up and running. You’ve figured out the benefits to being taxed as an S-corporation and have placed yourself on the payroll. Not to be unreasonable, you took steps to make sure your salary would be acceptable to the IRS should they choose to review it. Now that your company is profitable, how do you get that profit into your pocket without creating tax headaches?Here are four facts you need to know about distributions from an S-corporation. 1. &nb […]

What is Basis?

Every profession has them.  Names, words, jargon or acronyms that only people in the profession use.  The words are designed for insiders to communicate with insiders.  The mere mention of the words keeps outsiders at bay.Tax accounting has more than a few.  Amortization, bonus deprecation, MACRS, any phrase containing the word “section” and of course, the word “basis”. ​The insider jargon makes accounting all but impossible to unders […]

How Much Should I Pay Myself?

The question of owner’s compensation is a hot issue for small businesses paying taxes as either an S-corporation or a C-corporation.  When the business files taxes as a corporation, the owner must also be paid as an employee.  Not only is the owner the investor, s/he is also an employee.  For the purposes of this post, let’s assume the business is filing as an S-corporation.Creating a compensation plan for your employees is hard enough, what should you consider when d […]

Will Forming an LLC Save Money on Taxes?

​WARNING: This is an extremely dry topic. Reading this post may result in drowsiness, restlessness and/or irritable behavior. Do not consume alcohol in excess and never operate motor vehicles or heavy machinery while reading this post.  McCann Advisors makes no warranties of any kind, either express or implied, including but not limited to warranties of merchantability, vague interest by the reader, fitness for a particular purpose, of title, or of noninfringemen […]