Are you wondering where to get your taxes done? The best price?
This is a great question. You want to be sure you're spending your money wisely and getting the best help possible because of all the new tax changes. What is best for your situation.
The point is that filing online is not the best way to go if you don't have an extremely complex knowledge of the new tax changes. We suggest taking your information to a local full year licensed tax professional like Mike McVay, Tax Accountant in Pensacola, FL.
The bottom line is that the more complex your financial situation is (i.e. rental properties, heavy stock trades, small business, income from multiple states), the more likely it is that you should use a professional, like McVay Business Services, to help you with tax planning and filing your taxes. For the rest of us, filing online is the way to go. Survey's show the I.R.S. targets taxpayers that use retail Tax software 5 to 1 for tax audits. Most of the audit protection that comes with some tax software is a joke. If your audited these companies will not send an accountant to the audit like McVay Business Services does.
850-725-5696 - www.PensacolaFLTax.com - www.QuickBooksPensacola.com
Prices to file taxes can be all over the map because everyone's situation is so different. I've put together some averages based on reliable sources that should give you an idea of what to expect when you go to file.
Why Pay a Licensed Accountant?
Going to a LOCAL flesh-and-blood tax professional may be the best option for many taxpayers. That's because a professional Accountant can help you navigate the difficult tax questions like business structure, tax planning moves, etc. that pop up throughout the year.
Software has a harder time with this. You can't have lunch with and discuss your small business with software.
Accountant are usually the best option, your getting someone to help you with a difficult tax situation or simply to give you that extra assurance.
What Are S Corporations and LLCs?
According to the Internal Revenue Service, which takes a special interest in how a business is classified, an S corporation is a business that opts to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.
Basically, S corporation shareholders report the flow-through of income and losses on their personal tax returns and the IRS subsequently assesses a tax at their individual income tax rates. Under this scenario, S corporations can bypass double taxation on any corporate income earned by the business.
To get Uncle Sam's stamp of approval and achieve S corporation status, a company must meet the following requirements, as laid out by the IRS:
What Is an LLC?
A limited liability corporation is a relative common, uncomplicated business structure, with a strong dose of flexibility for business owners.
The flexibility in an LLC can mainly be found in numbers, as LLCs can be owned by more than one individual (the IRS refers to LLC participants as "members"), or it can be operated by a single owner (known as a "single member LLC" by the IRS.)
Structuring a business as an LLC offers ample benefits to business owners. For starters, it offers a firewall against lawsuits in protecting personal financial assets. It also curbs paperwork, stops a company from being taxed twice by the IRS, and provides some much-needed stability for new companies.
Creating an LLC is fairly basic, even by Internal Revenue Service standards. Business owners usually launching an LLC in their home states, although many business owners form an LLC in tax-friendly states like Delaware or Nevada.
Process-wise, new applications for an LLC are handled by the specific state's secretary of state office (the office's website is a great place to start your research on LLCs.) The filing form is simple and short, requiring the names of each LLC partner and their contact information. Each state has its own way of doing business, but LLC owners can count on paying a filing fee of up to $200.
Hiring a good business and/or tax lawyer isn't necessary, but for a nominal fee, it's a good idea to have an experienced hand on the till when structuring your LLC.
Tax Benefits of an LLC Filed as S Corp.
There is a way to hit the "sweet spot" and benefit from both an LLC and an S corporation designation.
Business owners can do so by becoming an LLC and elect to have your business treated like an S corporation for tax purposes. Business owners need to make that call via an IRS Form 2553, but the reality is the process of balancing your company between an LLC and an S corporation is easy to do and offers some intriguing tax and operational benefits:
By structuring your company as an LLC and then electing to be designated as an S corporation, business owners earn two primary benefits:
While the tax form process of applying is easy (using Form 2553), The IRS has strict rules that companies need to abide by to file as an S corporation. These S-Corporation rules for reasonable compensation is required in order to received the great tax benefits of an s-corporation.
By and large, an S corporation will only be approved under these conditions:
Pros and Cons of Filing as an S Corporation
Although there are plenty of benefits of filing an LLC as an S Corporations, it isn't the best option for everyone.
Pros of Filing as an S Corp
There are some decided benefits from electing to become an S corporation. Most benefits focus on operational and tax issues - here's a quick look:
These are some decided disadvantages of being an S corporation:
That said, financial issues are likely the determining factor in choosing between an S corporation and an LLC. For instance, if you want to earn a salary instead of declaring self-employment income, you want pass-through taxation, and you want to make it easier for your company to obtain investment capital, an S corporation can be a good idea.
But if you want more flexibility in operating your company and don't want the red tape associated with running a corporation, an LLC may be the way to go.
Either way, it's advisable to consult with a tax specialist (Mike McVay, Tax Accountant @ 850-725-5696) and talk to business owners who have experience in both S corporation and LLC scenarios before committing to one business structure over the other.
McVay Business Services
5336 N Blue Angel Pkwy
Pensacola, FL 32526
For individuals and businesses who owe back taxes to the IRS and have an urgent need to settle for substantially less than the full amount -- the IRS now offers a variety of options for consumers, including the new IRS Fresh Start initiative. McVay Business Services has been working with taxpayers for over 20+years. The new I.R.S Fresh Start Initiative is the best option ever offered for taxpayers that cannot pay their I.R.S. debt.
Free consultation if you mention this blog post.
Mike McVay, Tax Accountant - 850-725-5696 - Mike@MikeMcVay.com
5336 N Blue Angel Pkwy - Pensacola, FL 32526
Attention drivers, the 2019 standard mileage rates have been released. The IRS announced the rates today, which are used for determining the deduction for the costs of operating a vehicle for various business, charitable, moving, or medical reasons.
What are the changes for 2019?
Starting January 1st 2019, the standard mileage rates (for use of a car, van, pickup or panel truck) are:
Make note that under the Tax Cuts and Jobs Act (TCJA), taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Also, taxpayers are unable to claim a deduction for moving expenses (unless the taxpayer is a member of the armed forces on active duty moving under orders to a permanent change of station).
How are the rates calculated?
There are various factors that influence the standard mileage rates, including:
How can I reduce my fuel consumption?
Looking for ways to save money and reduce fuel consumption? There are a few things you can do to make the most out of a tank of gas:
No, taxpayers always have the option to claim deductions based on the actual costs of using a vehicle, as an alternative to using the standard mileage rates.
Questions on the standard mileage rates for 2019? Contact Mike McVay, Tax Accountant 850-725-5696 - www.PensacolaFLTax.com - Mike@MikeMcVay.com
5336 N Blue Angel Pkwy Pensacola, FL 32526 - Pensacola Tax Service
You may have herd that I.R.S refunds will be delayed if the Gov. is shut down. NOT TRUE !
Tax refunds will go out even if the government shutdown extends into filing season, the Internal Revenue Service said late Monday, and the agency will start accepting tax returns on Jan. 28.
Mike McVay, Tax Accountant - Pensacola, FL - 850-725-5696
IRS Could Be More Taxpayer-Friendly in the New Year
Let’s face it…the IRS isn’t the most popular government agency out there. It’s not just that they take your money. They also have a (undeserved?) reputation for tough stances on deductions and credits, aggressive tax collectors, poor customer service and generally being difficult if you happen to disagree with them.
Wouldn’t it be nice to have a kinder, gentler IRS? You’d still have to pay your taxes, but at least you wouldn’t have to deal with some of the IRS’s rougher edges anymore. Well, guess what… Congress is kicking around a few ideas that would make the IRS a little more taxpayer-friendly.There’s bipartisan support for improving the IRS, so we may actually see some of them enacted.
Have not filed taxes in years? Owe the I.R.S ? McVay Business Services is authorized to offer you a fresh start with the new I.R.S Fresh Start Program. Forgiveness and/or low monthly payments with low interest.
Call Mike McVay, Tax Resolution Expert @ 850-725-5696
Mike McVay, Tax Accountant Blog
Certified QuickBooks ProAdvisor & Licensed Tax Accountant Pensacola, FL
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