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Tax Deduction Consulting: Corporate Tax Deductions Bismarck ND

The Corporation has several advantages over other forms of business. These advantages have most to do with liability protection to the owners. The Corporation isolates the business and its affairs from the personal affairs of the actual owners, who are the shareholders.

H&R Block
(701) 250-0960
2717 ROCK ISLAND PL
BISMARCK, ND

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H&R Block Inside Times Square West
(701) 282-4570
5050 13TH AVE S
FARGO, ND

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Liberty Tax Service
(866) 871-1040
720 S Washington St
Grand Forks, ND

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Liberty Tax Service
(866) 871-1040
113 Main Ave E
West Fargo, ND

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Liberty Tax Service
(866) 871-1040
3005 13th Ave S
Fargo, ND

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Liberty Tax Service
(866) 871-1040
500 W Main St
Mandan, ND

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H&R Block
(701) 746-5963
2551 32ND AVE S
GRAND FORKS, ND

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Accounting 4 Success
(701) 371-0419
3320 Westrac Drive
Fargo, ND
 
Liberty Tax Service
(866) 871-1040
118 14th St W
Williston, ND

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H&R Block
(701) 241-7628
1531 S UNIVERSITY dr
FARGO, ND

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Tax Deduction Consulting: Corporate Tax Deductions

Check List of Corporate Tax Deductions

A Corporation is the only type of business entity in the United States that is required to pay "income tax" on its profits. That is why corporate tax deductions are so important.

The Corporation has several advantages over other forms of business. These advantages have most to do with liability protection to the owners. The Corporation isolates the business and its affairs from the personal affairs of the actual owners, who are the shareholders. This means that the Corporation must pay its own "income taxes." In the case of other business structures such as sole proprietorships, LLCs, and partnerships, the tax obligation is passed on to the owners directly. They then pay the income tax on the profits as part of their own personal income taxes.

Since the Corporation is treated much like an individual for the purpose of taxation, it is essential to make sure that only the fair and legal amount of tax is being paid. It may be nice to the ego of the managers to inflate the profit figures by ignoring some legitimate business expenses, but it is not wise from a taxation point of view to miss any deductions. So, what are legitimate business expenses?

Actually, any expense that is in anyway related to the goal of producing a profit can be deducted as a legitimate cost of doing business expense. This would include the pay and benefits of any and all employees. Even if the employees are substantial stockholders, they are still paid a salary and this salary is the basis for their own personal income tax. To the Corporation, this is just a deductible expense. The cost of benefits is included also as a deduction.

A checklist of Corporate Tax deductions would include virtually everything that is related to doing business. This is why proper accounting procedures are of paramount importance to any Corporation regardless of its size. Many small business owners are drawn to the idea of Incorporation for the liability protection an...

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