Teraoka and Company CPA
AN ACCOUNTANCY CORPORATION – CERTIFIED PUBLIC ACCOUNTANT
Accounting & Bookkeeping Services
Tax Preparation Services
Consulting Services
Best CPA/Accounting firm in Huntington Beach, CA
The individual tax preparation roster includes clients in many other states and to some living abroad. When you walk in, you become the most important person in our office and you will receive timely and competent attention paid to your needs. Your business, tax or financial matters are given specific attention to fit your particular situation. Our goal is to communicate with you in a manner that leaves you well-informed and feeling confident in our services. Feel free to discuss your needs and objectives with us. Our motto is: “We are here to help you. Just ask!”
What’s a corporation?
Who must file a tax return?
If an entity with more than one owner was formed as a Limited Liability Company (LLC), it is generally treated as a partnership for tax purposes and files Form 1065. Otherwise, if it is a single-member LLC, it is disregarded as an entity separate from its owner and reports its income and deductions on its owner’s Federal Individual Income tax return. However, the LLC can file a Form 1120 if it has filed Form 8832 to elect to be treated as an association taxable as a corporation.
How to form a Corporation?
When to file a Corporation?
However, for a corporation with a fiscal tax year ending June 30, they must file by the 15th of the 3rd month after the end of its tax year.
If the due date falls on a Saturday, Sunday, or federal holiday, the corporation can file on the next business day.
What’s a S Corporation?
Shareholders will receive a Schedule K-1 to report their share of the corporation’s income, deductions, credits and other items. Shareholders may be liable for tax on their share of the corporation’s income, where or not it was distributed. Your share of S corporation income is not self-employment income and it is not subject to self-employment tax.
How to form a S Corporation?
To be eligible for a S Corporation, the corporation must meet the following:
-Be a domestic corporation
-Have only allowable shareholders who are individuals, certain trusts, and estates
-Shareholders may NOT be partnerships, corporations or non-resident alien shareholders
-Have no more than 100 Shareholders
-Have only one class of Stock
-Must not be an ineligible corporation (example: financial institutions, insurance companies, and domestic international sales corporations)
Benefits of filing a S Corporation tax return?
Some expenses incurred by the shareholder can be written off as business expenses.
Another benefit is the owners personal assets are shielded from the claims of business creditors.
When to file a S Corporation?
Who can sign off on the return?
When to make estimated tax payments?
If the corporation expects the total tax for the year to be $500 or more, then the corporation must make installment payments of estimated tax. The installments are due by the 15th day of the 4th, 6th, 9th, and 12th months of the year, if applicable.
Interest is charged on taxes paid late even if an extension of time to file is accepted. Interest is also charged on penalties imposed for failure to file or understating transactions and tax. A corporation that does not file its tax return by the due date, including extensions, may be penalized 5{0dbc760a9dfc4e3d205bd116e2385a09c3833b2f256cc77f7485397a9d5ecf63} of the unpaid tax for each month, up to a maximum of 25{0dbc760a9dfc4e3d205bd116e2385a09c3833b2f256cc77f7485397a9d5ecf63} of the unpaid tax. A corporation that does not pay the tax when due may be penalized 0.5{0dbc760a9dfc4e3d205bd116e2385a09c3833b2f256cc77f7485397a9d5ecf63} of the unpaid tax for each month the tax is not paid, up to a max of 25{0dbc760a9dfc4e3d205bd116e2385a09c3833b2f256cc77f7485397a9d5ecf63} of the unpaid tax.
What are the types of estate tax returns?
What are some types of assets that would generate income to the decedent’s estate?
Am I required to file an estate tax return?
What’s an EIN? Can we use the decedent’s social security number?
If the estate or trust has not received its EIN by the time the return is due, write “Applied for” and the date you applied in the space for the EIN.
https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein
What is a Schedule K-1? Why does the beneficiary receive them?
When should we file by?
If more time is needed to file the estate or trust return, use Form 7004 Application for Automatic Extension of Time to File Certain Business Income Tax to apply for an automatic 5 ½ month extension of time to file.
Who can sign off on the return?
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Certified Public Accountants
16872 Bolsa Chica Street Suite 202 Huntington Beach, CA 92649
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714-840-4712