Anthony Sykes & Company

Each business has its own unique set of challenges to face, and decisions to be made. There are many factors that need to be considered. The type of business and industry that it is in will play a key role in getting a clear understanding of things. Other times, the right set of circumstances may come into play and make what seems to be an ideal situation. We will take a look at how this is true of the Manufacturing industry. The recent Tax Cuts and Jobs Act has made changes that will directly affect Manufacturing industry businesses. For example, Tax Reform has made it possible to deduct the full cost of property bought and used, as long as it is done so before 2023. This provision will be reduced by 20% each year afterward and then expire by 2027. Incorporated manufacturers will see a lower Tax Rate as well. There are certainly some immediate benefits to being a manufacturer in the times we are living in! However there are some drawbacks to consider. Owners of what can be called...

          There are many similarities between an S Corp and C Corp. They are both separate legal entities and have a similar internal structure. The limited liability protection basically keeps the owner or owners safe from personal responsibility for debts. They both are legally required to follow the same yearly requirements regarding bylaws, statements of information, and paying fees. However there are some very distinct differences that must be clearly understood.           The largest difference revolves around taxation. C corporations are their own entities and file taxes at the corporate level. An S corporation is considered a pass-through entity. This means that all profit or loss goes through the business and is reported on the owners’ personal Tax Return. The owners’ will pay the tax on their level. There is a limit of 100 shareholders in an S corporation and they must all be US citizens. In this way, S ...

The 12 Biggest Tax Scams to Avoid  1. Phishing . There are so many fake websites and emails that are created with the sole intention to steal personal information. Remember that the IRS will never start contact with an email. 2. Phone Scams. This is a well-known and still very common method used by thieves. The IRS will never threaten a Taxpayer with arrest by the police or deportation. 3. Identity Theft . Tax Season is the time when the greatest amount of identity theft takes place. Taxpayers can help to protect themselves by choosing a Tax Professional who is trustworthy, honest, and protects their personal information. 4. Tax Preparer Fraud. Sadly, there are some preparers who look to take advantage of others. Taxpayers can help themselves by never signing a blank return and making sure they clearly understand the fees before choosing a preparer. 5. Fake Charities . If a group sounds similar to a well-known organization, but not quite the same, take some time to do mo...

          Every business has unique challenges to face, and choices that need to be made. There are many factors to consider. The location may need to be taken into consideration. The type of business, and the industry it is in, will play a big part in clearly understanding what decisions need to be made. We will take a look at restaurants to highlight how this is true.           Each restaurant will need to consider recurring costs for food products, payroll, rent, and utilities. Marketing is also an expense that must be considered since every business owner wants a profitable business. With that understood, there is a trend that has been growing in some areas that attempts to streamline expenses for restaurants. This is the idea of a “cash-free system”.           Having a restaurant that only deals with credit or debit cards might seem attractive. Paying would be ...

         One option when it comes to incorporating a business is creating a C Corporation. They are the most type of corporation. It allows for deducting employee benefits and is often very attractive to investors looking to fund a business. There are options that allow for many owners and different types of stock options. This type of business can outlive its owner and offers a tax savings to those who are self-employed, since they are considered employees of the company.           In order to qualify for this type of incorporation, Articles of Incorporation must be filed stating such a goal. The C Corporation must immediately adopt bylaws, hold a meeting of directors and shareholders, and issue stock. The Statement of Information must be updated annually . This will state the company’s activities over the last year. It will include accounting policies, cash flow statements, and an Auditor’s report. The meetin...

          With every year, there are new and inventive ways that are found to avoid paying the full Tax obligation owed. In the time before official guidance from the IRS is issued it can be a wild time of creative “interpretations”. When new Tax Laws are passed if one door to a loophole is closed, then a window can be opened. These are the times we find ourselves in with the Tax Cut and Jobs Act . It is especially true when it comes to what is known as the 20% pass-through deduction and some of the words used to define it.           This deduction is supposed to also apply to “service professionals”. What does that mean? There are some particular industries mentioned like health, athletics, and performing arts. In addition, there is an exclusion that applies to a business where its largest value is the “reputation or skill” of the owner or the employees. Do you understand? Most professionals are not sure and whe...

         Most corporations provide a service for a price, and use that revenue to stay in business and keep a profit. This is certainly basic information. They have limited liability protection, meaning that directors and officers are not usually responsible for debts or liabilities of the company. This description applies almost every corporation in the marketplace today. However, there are certain organizations that have a different aim. They may have an educational, charitable, scientific, or religious purpose. In this case, they would state their directive in their Articles of Incorporation . This will define what the corporation is to the state and the IRS. This is simply the first step in creating a Non-Profit and the requirements are different in each state. It is a more complicated process and a Tax Professional will make it easier if they are there from the beginning. But, if this is the area you want to have a corporation in, the work will be well...