Saturday November 21, 2009

smSmallBiz.com - SmartMoney's Small Business Site

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Asked & Answered: Small Businesses and Taxes
We answer biz owners questions about solo 401(k)s, prepaying expenses, Section 179 deductions and more.
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AHarke Posted: 11:01 AM On October 16, 2009
A great business model begins with a great trademanrk

www.thetrademarkcompany.com
Michael T. Hanley, CPA Posted: 11:46 AM On July 6, 2009
I find myself reading every article that Diana Ransom writes and this is another great one.

This is actually a pretty unique scenario, in which each of the first three questions askers (Charles Judice, John Rovani, Guy Drobny) sound like they are not operating their business under the best business structure.

#1&2 - Charles & John are obviously concerned with reducing their tax bills. As such, they need to look to the S Corporation in order to achieve this goal. Charles should setup a new S Corp and John should elect to have his existing LLC taxed as an S Corp

#3 - In order to minimize audit risk, Guy Drobny should be sure to have his LLC taxed as either a Partnership or an S Corp. For optimal tax benefits, he should opt for the S Corp

Michael T. Hanley, CPA is the Managing Partner of the Smithtown, NY CPA Firm, Merl & Hanley, LLP and the author of Effective Tax Planning for the MicroBusiness (available at bookstores nationwide or online at www.30minutebooks.com).
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