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Become A S-Corp To Save On Taxes

 Avoid double taxation, and reduce the amount of self employment (Medicare & Social Security) taxes. If you're a sole proprietor, or single member LLC, in addition to your income taxes,  you're subject to an ADDITIONAL 15.3% self employment tax! Once you began to net $35,000-$40,000 annually, you may need a S-corp!  

S-Corp Creation & Maintenance Plans

S-Corp creation package no existing LLC or C corp $975

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INCLUDES LLC STATE REGISTRATION FEE! Fee paid to the state of Illinois, (or your resident state) for the privilege of forming an LLC/Corporation in that state. 


HOWARD TAX PREP LLC STARTER ENTITY CREATION PACKAGE.  

Includes up to 30 name searches in the State databases. Preparation & filing of Corporation Articles of Incorporation, or LLC Articles of Organization.

Federal Tax ID number.

Sample Bylaws/Operating agreement.

*Toll free number or virtual mailing address for 30 days.  


IRS S-CORP ENTITY REQUEST. In order to have your business recognized as an S-corp, you must request S-corp taxation from the IRS within a certain time frame. 


FEDERAL, STATE, & COUNTY QUARTERLY PAYROLL TAX RETURN REPORTING & FILINGS FOR TAX YEAR. Includes reasonable compensation report based on tax court cases, revenue rulings, and RC reports. 


IRS COMPLIANT EXPENSE REIMBURSEMENT PLAN & TRANSACTION LEDGER. In order to take advantage of TAX FREE NON REPORTABLE INCOME, you must have an expense reimbursement policy that adheres to the Internal Revenue Service (IRS) and Department of Labor guidelines.



S-Corp creation package existing LLC or C corp $625

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   IRS S-CORP ENTITY REQUEST. In order to have your business recognized as an S-corp, you must request S-corp taxation from the IRS within a certain time frame. 


IRS COMPLIANT EXPENSE REIMBURSEMENT PLAN & TRANSACTION LEDGER. In order to take advantage of TAX FREE NON REPORTABLE INCOME, you must have an expense reimbursement policy that adheres to the Internal Revenue Service (IRS) and Department of Labor guidelines.  


 FEDERAL, STATE, & COUNTY QUARTERLY PAYROLL TAX RETURN REPORTING & FILINGS FOR TAX YEAR. Includes reasonable compensation report based on tax court cases, revenue rulings, and RC reports.  



Annual S-Corp Maintenance $995 + Bookkeeping Cost

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COMPLIANCE FILINGS. Includes preparation & filing of annual report and state filing fee. 


TAX RETURN FILING. S-Corp Tax Return Preparation. 


REQUIRED PAYROLL REPORTS. Quarterly Payroll filings. 


BOOKKEEPING. DIY, or our cost. If you Do your own bookkeeping, you must take the Howard Tax Prep LLC small business beginners bookkeeping course ($149 for clients, $199 for non-clients), or an approved provider bookkeeping course. 

Annual Quarterly Payroll Report Filing. Included in annual package, or stand alone pricing at $245

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WHAT DOES IT DO? File & pay IRS MANDATED quarterly payroll report, and state payroll taxes. 


WHAT WILL IT SAVE YOU? SAVINGS: Save over $115 per year over the cost of a monthly payroll service that charges $29.95 per month. 


·WHY DO YOU NEED IT? COMPLIANCE: IRS S-corp laws mandates that a S-corp owner pay themselves a reasonable salary before distributing dividends. This package registers your company with all taxing authorizes, and ensures Federal & State legal compliance.

IRS compliant Corporate reimbursement plan. Included in annual package or stand alone at $225

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WHAT DOES IT DO? ALLOWS THE S-CORP TO TAKE BUSINESS DEDUCTIONS WITHOUT YOU HAVE TO RECOGNIZE THE INCOME. IRS compliant corporate reimbursement plan. Employer & employee plan agreement. Classification of plan. Administration of reimbursement plan. IRS compliant reimbursement tracking ledger. Includes software for employee expense capture and reimbursement payments.


WHAT WILL IT SAVE YOU? SAVINGS: A MINIMUM TAX DEDUCTION OF $12, 000. Figures are conservatively based on your fair market rent in your area, and estimated mileage for your profession. 


WHY DO YOU NEED IT? COMPLIANCE: IRS S-corp laws mandates that a S-corp owner pay themselves a reasonable salary before distributing dividends. This package registers your company with all taxing authorizes, and ensures Federal & State legal compliance. 

Solo 401K creation for 1 member LLC, C-Corps, & S-Corporations. $375

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WHAT DOES IT DO? Allows you to exclude income from currents years’ taxes,and defer the income for taxation at a later time.  Build your retirement income, and maintain access of up to 50% of the funds’ assets through loans.

 

WHAT WILL IT SAVE YOU? You will be able to defer up to $55,000 of taxable income. 


WHY DO YOU NEED IT? Retirement plans are an important element of a tax reduction plan. While an IRA is a good plan, if you need to access your money, you will have to pay a penalty. Those that can, should have a mix of 401k and traditional and Roth IRA’s. 

Cut self employment taxes

Cut Self Employment Taxes

Become A S-Corp To Save On Taxes

  

Howard Tax Prep LLC often works with Chicago residents that have to pay self-employment taxes. Although we are a nationwide tax firm, because our office is located in the South Loop of Chicago, we attract many Chicago tax preparation clients that need to lower their self employment taxes. 


If you are a sole proprietor, a 1 member LLC, or a general partner in a business, you know that the 15.3 percent self-employment tax can eat up your profits in a hurry. For example, let’s assume you operate a sole proprietorship and you earn $100,000 of net income. You must report your income on Schedule C of your tax return, which creates a self-employment tax liability of $14,129.55, in addition to your personal income tax! In order to lower self-employment taxes some self-employed Chicago residents have our firm apply their business for the IRS Subchapter S taxation status.


What Is an S Corporation?


The Subchapter S Corporation is a special IRS election that has to be requested during a very narrow 75-day window of time that begins on the day the business owner forms the corporation or LLC. Many of our self-employed Chicago tax clients choose to keep their legal entity as a corporation or a LLC, but have their taxable entity become an S corporation.


For federal tax purposes, your S corporation is a pass-through entity, meaning that the corporation’s income, deductions, and tax credit items are passed through to you, the shareholder, on a Schedule K-1. For some business owners, this is the best of both worlds: liability protection with personal taxation.



Special Rules

To elect S corporation status, the LLC or corporation must be: To qualify for S corporation status, the corporation must meet the following requirements:


· Be a domestic corporation

· Have only allowable shareholders

· May be individuals, certain trusts, and estates and

· May not be partnerships, corporations or non-resident alien shareholders

· Have no more than 100 shareholders

· Have only one class of stock

· Not be an ineligible corporation (i.e. certain financial institutions, insurance companies, and domestic international sales corporations).


Is it a good fit for your business?


No matter how they make look the same, every tax situation is different. S Corporations are great for businesses that:


· Provide services (insurance agents, consultants, etc.);

· Do not have large start-up costs;

· Won’t be making any major equipment purchases before operations begin; 

· Generate lots of revenue with minimal effort and expense.


S Corps are typically not recommended for holding real estate due to debt basis issues, transferring of real estate, and unfriendly tax treatment upon death.


If you want to know how much you can save on taxes by lowering your self-employment taxes, call our office today at 708-529-6604 or Toll Free at 855-743-5765. Howard Tax Prep LLC can provide you with tax reduction strategies for your business taxes, in addition to your personal tax return. 

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