Business Tax Recovery Logo


Corporate Tax Lawyers Aberdeen SD

Local resource for corporate tax lawyers in Aberdeen. Includes detailed information on local businesses that provide access to legal advice on IRS problem resolutions, merger planning, and internal corporate restructuring as well as advice and content on corporate taxes.

Kennith L. Gosch
(605) 225-2232
305 Sixth Avenue, S.E., P.O. Box 970
Aberdeen, SD
 
William K. Sauck Jr.
(605) 225-6310
One Court Street, P.O. Box 1030
Aberdeen, SD
 
James M. Cremer
(605) 225-2232
305 Sixth Avenue, S.E., P.O. Box 970
Aberdeen, SD
 
Melissa E. Neville
(605) 225-2232
305 Sixth Avenue, S.E., P.O. Box 970
Aberdeen, SD
 
Ronald J. Hall
(605) 225-1652
202 S. Main Street, Suite 310
Aberdeen, SD
 
Rory King
(605) 225-2232
305 Sixth Avenue, S.E., P.O. Box 970
Aberdeen, SD
 
Dennis Maloney
(605) 229-2752
722 South Highway 281, P.O. Box 755
Aberdeen, SD
 
Harvey C. Jewett
(605) 225-5420
400 Capitol Building, 415 South Main Street, P.O. Box 490
Aberdeen, SD
 
Rodrick L. Tobin
(605) 225-5420
400 Capitol Building, 415 South Main Street, P.O. Box 490
Aberdeen, SD
 
James A. Wyly
(605) 225-6310
One Court Street, P.O. Box 1030
Aberdeen, SD
 

Corporate Tax Deduction List

Corporate Tax Deduction List

Corporate taxes are very different than individual taxes. The corporate tax deduction list includes a great many items that would not necessarily qualify as individual deductions.

There are several advantages to structuring your business, even a small business, as a Corporation. The fact that your liability is limited only to the assets of the Corporation and do not extend to your personal assets is the major one. When your business is organized as a Corporation, you may very well lose your business if things go sour, but at least you will not lose your shirt or home. The taxation principles for a Corporation are very different, however, and you need to be aware of all the items on the corporate tax deduction list.

Corporations are taxed at a very high rate. This rate is currently 35% in the United States which ranks as one of the highest in the Western World. There are a couple of things that you need to know about this rate. First, the tax is not on the income of the Corporation, but only on the profits. The profits are considered to be only what are called ‘retainable" profits or profits actually paid out as dividends to stockholders. Retainable profits are those that might be called "bottom line" profits. It is what is left after every single business tax deduction is taken.

Normally, profit and loss statements focus on the actual costs associated with producing the income. If you are selling widgets, for example, the cost of the widgets is an expense. Profit is only the amount you sell them for less the amount you paid to buy or produce them. The cost of your building where they are sold and the salaries of your salesmen are naturally subtracted as well. This gives you a starting point. The profit involved in doing business.

There is another element. It is the cost of doing business. This is where a complete corporate tax deduction list comes into play. It would include business start up expenses, insurance for your building and contributions for employee insurance. It would include the following as well: car deductions, office expenses, business travel, meals and entertainment, depreciation, rent for equipment or special tools, and legal and professional services.

In fact, the corporate tax deduction list includes anything that you can document and that the IRS allows. It is all of these additional deductions for the costs of doing business that reduce the real profit of the entity to retainable earnings o...

Click here to read the rest of this article from BusinessTaxRecovery.com

S Corporations - What Are They for Tax Purposes?

S Corporation - What Is It For Tax Purposes?

The "S" corporation is the business entity of choice for many small businesses. The "S" in S corporation is a tax designation, not a legal one. All corporations are created the same way under state law. A small business, however, must then chose to be treated as a "C", "S" or non-profit for tax purposes. Important issues concerning S corporations are covered in this article.

Federal tax laws automatically consider every corporation to be a "C" designation. A small business, however, may elect to be an "S". Having each shareholder execute IRS form 2553, which is then filed with the IRS, accomplishes the election. The election must be made prior to the tax year in which it is going to be effective. If you want to be treated as an S corporation in 2006, you must file the election before December 31, 2005.

A C corporation stands alone for tax purposes. It must file tax returns and pay taxes on profits. Profits and losses are reported on the corporate tax return and do not pass through to shareholders. C corporations can elect any calendar month as the end of their fiscal year.

An S corporation is a pass through entity for tax purposes. It does not file a tax return for the purpose of paying taxes. All profits and losses are passed through to the shareholders. In turn, each shareholder reports the profit or loss on his or her individual tax returns in proportion to their ownership interest. If you own 60% of the total shares, 60% of the profits or losses must be reported on your personal tax returns. S corporations must have a fiscal year-end of December 31. If you intend to eventually take your business public, you cannot use an S corporation.

There are limitations on what type of corporate entities can make the "S" election. The biggest hurdles are:

  • No more than 75 shareholders;
  • Shareholders must be people, not other businesses, and
  • Only one class of stock can be issued.

There are negative aspects to ele...

Click here to read the rest of this article from BusinessTaxRecovery.com