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6/23/2018

McVay Announces FREE New Business Consultations

McVay Announces FREE New Business Consultations

6/22/2018

McVay's Tax and Accounting Newsletter June 2018 -

McVay's June 2018 Newsletter

Mike McVay is an Accountant, Tax Advisor and Certified QuickBooks ProAdvisor in Pensacola, FL. McVay keeps his clients up to date with all the latest news with twice a month electronic newsletters and a mailed bi-annual newsletter. If your in need of QuickBooks set-up, clean-up, training or consulting, Mike McVay has been a Certified QuickBooks ProAdvisor for over 20-years. McVay's clients praise his attention to detail and get it done attitude at a reasonable rate. 
See McVay's digital newsletter link below and the summer 2018
​bi-annual printed newsletter. 
Free Consultation offered during the summer of 2018. 
850-725-5696 - Mike@MikeMcVay.com
5336 N Blue Angel Pkwy Pensacola, FL 32526
www.QuickBooksPensacola.com - www.PensacolaFLTax.com

https://www.newsletterstation.com/27090/newsletter.html

6/14/2018

What business entity should I choose? LLC, S-Corp, C-Corp?

What business entity should I choose? LLC, S-Corp, C-Corp?
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There is a misconception floating around out there that an S-Corp is a standalone entity. Not true. There are three basic business entities with variations within. The three basic are-


  • Limited Liability Company (LLC)
  • Limited Liability Partnership (LLP) or General Partnership (GP)
  • C Corporation including Professional Corporation (some states require doctors, for example, to be a Professional Corporation)
Two notables missing from the list. First, sole proprietors are not an entity nor is the variant “Doing Business As” (DBA). If you wake up and want to sell used copiers, you can, right now, without any formalized structure. It is not smart, but certainly permissible. At times sole proprietors are interchanged with single-member limited liability companies (SMLLC) since the IRS and most states consider a SMLLC to be a disregarded entity for taxation, and both a sole proprietorship and a SMLLC will end up on Schedule C of your Form 1040. However, they are truly different in several underlying ways.


Also note how an S corporation is not listed. It is not an entity. It is a taxation election. The underlying entity has to be one of the above, and usually it is an LLC (either single-member or multi-member) for the ease of formation.


So while we might talk about your ‘S Corp’, or ‘S Corp Taxes’, we are truly talking about your underlying entity being treated as an S-Corp for taxation. Again, this is a common misconception… no biggie if you thought otherwise.


Avoid Self-Employment TaxesA common complaint from those who own their own business is self-employment tax. Can you avoid, reduce, eliminate or lower your self employment taxes or SE taxes? Yes, to a large extent actually but it takes some effort and an S Corp Election.


If you own a business as a garden variety single-member LLC (one owner or shareholder), your business income will be reported on your personal tax return under Schedule C and is subject to self-employment tax (currently 15.3%) and ordinary income tax. The same is true for a business that has not formed a corporation such as a sole proprietor and partnerships.  So, you could easily pay an average of 40% (15.3% in SE taxes + 25% in income taxes) on all your net business income in Federal taxes. Wow!


S Corp ElectionIf you own an LLC and have elected to be treated as an S corporation (Subchapter S) for taxation, the business now files a corporate tax return on Form 1120S. What’s the big deal? Before we get into that, let’s look at some quick numbers. These are based on using a salary of 40% of net business income for incomes up to $500,000 and then decreased incrementally to 30% for the millionaire at $2,500,000.

Mike McVay - Accountant 
850-725-5696
Mike@MikeMcVay.com
​www.PensacolaFLTax.com

6/13/2018

McVay Bookkeeping Prices

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850-725-5696
www.QuickBooksPensacola.com

6/10/2018

Small Business Monthly Bookkeeping @ $199.00 Per Month

Small Business Monthly Bookkeeping @ $199.00 Per Month

Pensacola Bookkeeping Tax Payroll QuickBooks
850-725-5696
Mike@MikeMcVay.com

6/8/2018

No Problem, Mike McVay Will Know What To Do, QuickBooks, Tax, Payroll - He has you covered!

No Problem, Mike McVay Will Know What To Do, QuickBooks Clean-Up, Training, Tax & Payroll - He has you covered!

Is my QuickBooks set-up correctly? This is one of the most common comments I get via e-mail, and it sounds like this: “I was watching your YouTube videos and it helped me get started with QuickBooks, however I have a feeling that I may have be missing something as my bank balances don’t match, my expense categories don’t seem to match. 
A clean QuickBooks can keep you from being audited by the I.R.S. According to this taxprotoday article,the IRS audits are just .5% of tax returns and there are 12 “red flags” to look after: Misreporting or not reporting income Earning more than $200k Big changes in income Unusually high charitable deductions & Unusually low salaries especially if your an S-Corporation.
No matter which version of QuickBooks you're using, there are always ways to make your workday easier. As with any software, we tend to learn the features we need and not much more. But small changes in the way you operate can add up to significant time savings and more accurate files. If you jumped into QuickBooks without a thorough introduction, consider these tips. 
Mike McVay, Certified QuickBooks ProAdvisor - Tax Advisor
​ 850-725-5696 * Mike@MikeMcVay.com
www.QuickBooksPensacola.com
Free Consultation
Clean-Up * Set-up * Training * Payroll & Workers Comp
    Mike McVay, Tax Accountant Blog
    Certified ​QuickBooks ProAdvisor & Licensed Tax Accountant Pensacola, FL

    Best Price
    ​No Compromise

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    Author

    Mike McVay, Accountant Experienced IRS Tax Resolution Specialist
    With over 20-years experience working with individuals, families & small business owners. McVay has long term knowledge in taxation to help with their income tax, I.R.S tax issues and businesses management.
    850-725-5696​
    Mike@MikeMcVay.com

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