There are situations when it makes sense for a business owner to close a business. However, a business owner may not just “walk away” from the business. There are steps that need to be taken prior to dissolution of a business in New York State. Tax Return Filing Obligations All required income tax returns have been filed (and taxes paid). …
S-Corporations and the Reasonable Salary
The legal entity chosen by a business will define the legal and tax compliance requirements of the business. That being said, “S-Corporations” are very popular in the small business community. An “S-Corporation” is a corporation that has made a tax election to be treated for tax purposes as a flow-thru entity similar to that of a partnership. However, there is …
Never Hold Real Estate in a Corporation
In my younger professional days I was told that real estate should never be held in a corporation. I would repeat this over and over again in my career until someone asked me to explain why real estate should not be held in a corporation. This article will answer that question: Why real estate should not be held in a corporation …
Entity Selection: S-Corp vs LLC
This article will compare the federal tax effects of entity selection. This article will be relevant to all taxpayers throughout the country but at times may point out New York State specific issues. I will further explain the pros and cons of both an S-Corporation and an LLC from a tax professional point of view. What is an S-Corp? There …