Ineligible shareholders in an S corporation are corporations, partnership, many Limited Liability Companies (LLC), Limited Liability Partnerships, ineligible trusts, and nonresident aliens. Certain single-member LLCs can be eligible shareholders of an S Corporation. See our blog on Eligible Shareholders,
Nexus 1N Stick “Call Your Shot”
Watch Jonathan Toews and Auston Matthews make havoc at their video shoot for the BAUER NEXUS 1N Stick! You Tube NEXUS 1N Stick
DOL New Overtime Regulations are on Hold
On November 22, 2016, a U.S. District Court granted an Emergency Motion for Preliminary Injunction and thereby enjoined the Department of Labor from implementing and enforcing the Overtime Final Rule on December 1, 2016. The rule updated the standard salary level and provided a method to keep the salary level current to better effectuate Congress’s… …Continue Reading
Benchmarking Best Practices
By comparing your company to others in the same field you can easily evaluate your performance and maintain a path towards business success. Benchmarking helps you understand when you might need to adapt a new strategy to put your business on top of the market. With industry comparison, analysis of your business’ performance becomes more easily managed…. …Continue Reading
Strategies to Improve Cash Flow
Cash is often referred to as the lifeblood of a business because it is the primary indicator of business health. Without cash, the business will die. Four strategies for improving the cash flow in your business are to manage assets, manage accounts receivable, manage your suppliers, and manage trade volume. In a recent article for the… …Continue Reading
2016 IRA Contribution Limits
The IRA contribution limit for 2016 is $5,500. This amount is unchanged from 2014 and 2015. For those age 50 and older, the limit is $6,500. But, if the taxpayer or a spouse is covered by a retirement plan at work, they may not be allowed to make a traditional or Roth contribution, or the contribution amount… …Continue Reading
2016 Compensation Limit for Employer Contributions
The compensation limit for 2016 is $265,000. This represents the maximum amount that can be considered when calculating an employee’s portion of the employer’s contribution. The limit is indexed for inflation each year. The Internal Revenue Service announces the revised figure each year.
Meeting the One Class of Stock Requirement of an S Corporation
An S corporation can only have one class of stock. If it violates this requirement, it may cause the corporation to lose its eligibility to be an S corporation. An S corporation is treated as having only one class of stock if all of the outstanding shares of stock confer identical rights to distribution and… …Continue Reading
How is an LLC Classified for Tax Purposes?
A single-member LLC that does not file a classification election will be classified as a disregarded entity. Income and expenses from the business will be reported on Schedule C with the owner’s income tax return. The member has the option for the LLC to not be classified under these default rules by filing an election…. …Continue Reading
Are Losses Allowed?
Let’s say you have a loss from a limited partnership you invested in, or you are a shareholder in an S Corporation and have a flow-through loss. You have to determine if you’ll be allowed to take the loss on your tax return; it is not automatically allowed. The first limitation is basis. You must… …Continue Reading
