When it comes to business tax preparation services, Accel Tax & Business Service’s tax professionals located at 235 Magrath Darby, Mount Pleasant, SC (a 5-10 minute drive from downtown Charleston) are here to meet all your business’ tax needs. Schedule an appointment today – we look forward to meeting you!
Preparing a business tax return is certainly a challenging exercise for any non-tax professional. With the enactment of the Tax Cuts and Jobs Act (TCJA) in 2018, the tax laws related to businesses have changed and filing a relatively simple return is often difficult. It’s just too easy to overlook deductions and credits to which you may be entitled. There is no substitute for the assistance of an experienced tax professional: a CPA, attorney or IRS enrolled agent. Accel Tax & Business Services has been performing business tax preparation in the Charleston / Mt. Pleasant and surrounding areas for over 15 years. Our tax advisors have seen it all during this time.
Our tax advisors prepare all federal, state, and local income tax returns and offer electronic filing at no additional charge.
Our tax advisors will review your tax return to minimize potential problems and avoid “red flags” that may prompt IRS scrutiny.
We are professionals in dealing with unique or complex tax issues such as those facing real estate, medical, investment, law, construction, retail, restaurant and other businesses.
Our tax advisors can show you how to adjust your withholdings or help you set up a schedule of estimated tax payments if you are self-employed to avoid unnecessary tax penalties.
Our tax advisors are also available throughout the year to assist you in examining the tax consequences of anticipated transactions.
When you engage our Charleston tax and accounting firm to prepare your business’ tax return you can be assured it will be prepared by an IRS licensed professional. Each business tax return that our professionals prepare will be analyzed by our state-of-the-art tax preparation software specifically designed to identify problem areas that the IRS may scrutinize or look at more closely. Once your tax return is completed, one of our tax advisors can walk through the tax return with you and answer any and all questions that you may have. All business tax returns may be filed electronically at no additional charge so that you will receive your IRS refund as quickly as possible.
Business Tax Return Preparation
Taxes can have a significant impact on the operation of any business. We prepare all federal, state, and local tax returns for any form of business entity, including:
Limited Liability Company (LLC)
Condominium Owner Associations
Property Owner Associations
Business tax return preparation is the last step in good business tax planning. One of the most powerful strategies for saving small business taxes is maximizing your deductions. You can literally save thousands in taxes each year. We can also assist you with new business formations and strategic business planning. We are available throughout the year to assist you to ensure that you and your business pay only the amount of taxes your business is required to pay and no more.
Single Member LLC Tax Return Preparation
A limited liability company (LLC) is a type of business form created by state statute. Depending on the tax structure elected by the LLC and the number of members, the IRS will treat an LLC either as a corporation (S Corporation or C Corporation), partnership, or as part of the business owner’s personal tax return (a “disregarded entity”). For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless the LLC elects to be treated as a corporation. However, for purposes of employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity.
If a single member LLC does not elect to be treated as a corporation for tax purposes, the LLC is a “disregarded entity” and the LLC’s financial activities should be reflected on its owner’s federal tax return. If the owner is an individual, the financial activities of the LLC will generally be reflected on IRS FORM 1040 Schedule C (profit and loss from business) and, if appropriate, on Schedule E (supplemental income or loss). As such, a separate corporate tax return for a single member LLC is not required. An individual owner of a single member LLC that operates a trade or business is subject to tax on net earnings from self employment in the same manner as a sole proprietorship. If the single member LLC is owned by a another entity (such as a corporation, LLC, or partnership) the LLC’s financial activities should be reflected on its owner’s federal tax return as a division of the parent entity.
S Corporation Tax Return Preparation
The IRS requires that all corporations file tax returns annually, regardless of whether or not the company was profitable during the tax year. Any corporation that elected an S corporation tax structure must report its financial activities on IRS FORM 1120S. If a qualifying LLC has elected to be taxed as an S Corporation, it should also file IRS FORM 1120S. Each owner reports their prorata share of corporate income, credits and deductions on Schedule K-1 (Form 1120S). As compared to a sole proprietorship or a single member LLC operating as a sole proprietorship for tax purposes, an S corporation tax structure requires additional tax accounting.
For example, an S corporation must address its payroll accounting for the businesses employees. At the federal level, S corporation payroll accounting requires an S corporation to file Form 941 payroll tax returns which report on the wages paid to employees, the Social Security and Medicare taxes that the employer owes on those wages, and the taxes withheld from the employee’s gross wages for federal income taxes. Social Security Taxes, and Medicare taxes. S corporation payroll accounting also requires the filing of an annual Form 940 payroll tax return to report and pay federal unemployment tax (also known as FUTA). Finally, S corporation payroll accounting requires the preparation and distribution of W2 and W3 forms which report to employees, the Social Security Administration, and (indirectly) to the IRS what wages and taxes an employer has paid over the year.
C Corporation Tax Return Preparation
The IRS requires that all corporations file tax returns annually, regardless of whether or not the company was profitable during the tax year. All corporations that have elected a C corporation tax structure must report its financial activities on IRS FORM 1120. If the LLC is a corporation, normal corporate tax rules will apply to the LLC and it should also file a IRS FORM 1120. The 1120 is the C corporation income tax return, and there are no flow-through items to a 1040 from a C corporation return.
Corporate tax returns detail the company’s profits and expenses to determine the amount of tax the company owes to the US government. The return comprises of several schedules that detail information such as the costs of goods sold, dividends and deductions, officer compensation, details about the accounting method used, business type, NAICS classification number, balance sheets, and the reconciliation of income and loss.
The information necessary to file corporate tax returns includes the name, address, employer ID number, date of incorporation, and the total assets. The corporate financial officer will need to supply details about the corporate income including but not limited to: gross receipts, cost of goods sold, dividends, interest, rents, royalties and capital gains.
Corporations are able to claim many tax deductible expenses against income. The financial officers of the corporation should be tracking these details throughout the year and be able to supply full documentation in the case of an audit. The deductible expenses include but are not limited to: officer compensation, other salaries, repairs and maintenance, rents, taxes and licenses, interest expenses, charitable contributions, depreciation, advertising, pension and profit sharing plans, employee benefit programs, domestic production activities, etc.
Special Rules For Foreign Investors
Corporations owned by non-US residents are required to file corporate returns. Non-US residents should seek advice from an international tax expert when opening a business in the US as well as when filing taxes. Our tax and accounting firm provides these services. Under US tax law, non-residents may own shares in a C corporation, which may be subject to double taxation of profits at the corporate level and at the personal level for dividends received by shareholders. Alternatively, LLCs taxable as a partnership will pass on all of the profit to the owner who will then need to file personal tax returns with the IRS.
LLC / Partnership Tax Return Preparation
All US-based domestic or foreign partnerships must file annual tax returns with Form 1065 including all schedules to include information about the partnership, income, deductions, and costs. A partnership is the relationship existing between two or more persons who join to carry on a trade or business. A limited liability company with two or more person may elect a partnership structure for tax purposes. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.
An LLC electing to be taxed as a partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it “passes through” any profits or losses to its members. Each LLC member includes his or her share of the partnership’s income or loss on his or her tax return.
LLC members in a partnership tax structure are not employees and should not be issued a Form W-2. The LLC must furnish copies of Schedule K-1 (Form 1065) to the members by the date Form 1065 is required to be filed, including extensions.
Pursuant to the entity classification rules, a domestic entity that has more than one member will default to a partnership. Thus, an LLC with multiple owners can either accept its default classification as a partnership, or file Form 8832 to elect to be classified as an association taxable as a corporation. If the LLC is a partnership, normal partnership tax rules will apply to the LLC and it should file a IRS Form 1065 (tax return of partnership income). Each owner should show their prorata share of partnership income, credits and deductions on Schedule K-1 (1065), Partner’s Share of Income, Deductions, Credits, etc. Generally, members of LLCs filing Partnership Returns pay self-employment tax on their share of partnership earnings.
Special Rules for Foreign Partners
Foreign partnerships that allocate taxable income to a foreign partner may also need to pay a withholding tax. In order for foreign partners to claim refunds, they must file a personal tax return with a valid Taxpayer Identification Number (TIN). It is important to ensure that foreign partners have valid TINs as the IRS requires that the withholding tax is paid for a foreign partner even if he or she does not have a valid number and is, therefore, unable to file a personal return.
Is Your Accounting A Disaster? Our Firm Provides Bookkeeping Services Too!
Many taxpayers forgo worthwhile tax deductions because they have neglected to keep receipts or records. Keeping adequate records is required by the IRS. But don’t do it just because the IRS says so. Neglecting to track these deductions can lead to overlooking them. You also need to maintain records regarding your income. For example, if your receive a large tax-free amount, such as a gift or inheritance, make certain to document the item so that the IRS does not later claim that you had unreported income. If you have not set up an easy system that allows you to keep your books current, we can help. Our firm offers several bookkeeping plans for both individuals and businesses.
Our Business Tax Return Preparation Process
The business tax return preparation process begins when you provide us with your businesses bookkeeping data. Our average turnaround time from the date we receive your tax organizer and supporting financial documentation, to the date your tax return is prepared and ready for your review is less than two weeks during early and mid-tax season. As the tax deadline approaches, understandably our tax advisors become very busy. For that reason, we strongly recommend that all existing clients submit their individual tax organizers and supporting financial documentation to our office prior to February 23 to allow us the appropriate amount of time to complete your tax return by the tax filing due date. If you have a more complex financial situation or a large business, please allow additional time for us to properly prepare your tax returns. For all new clients, or if we did not prepare your prior year business tax return, our office must receive your bookkeeping and supporting financial documents by February 15 or sufficient information to obtain a filing extension .
If our tax advisors have any questions during the preparation of your tax return, we will promptly contact you. Once your tax return has been prepared, a second tax professional will review the return to ensure all the appropriate tax information has been entered. Our office will then notify you that your tax return has been prepared, and we will be available to answer any questions that you may have.
If you’d like to receive more information about our business tax return preparation services, please email or call our office today.
S Corporation Tax Return Process
S corporation tax returns are typically due on March 15 and not on April 15. Accordingly, S corporation business owners should ensure that our office receives the businesses QuickBooks data file, or other accounting software file, at the beginning of the year in January. The accounting data file would include copies or access to profit and loss statements, balance sheets, cash flow statements, and other relevant information. Remember that the income taxes on the S corporations profits are actually paid on the business owners individual 1040 tax return, which is typically due on April 15. Accordingly, it is highly efficient to use the same tax professional to prepare both the S corporation tax return and the business owner’s individual income tax return. The rationale behind using the same tax professional or firm to prepare both the business tax return and the individual tax return is to minimize the tax paid on the business owner’s individual tax return.