Frequently Asked Questions

All completed tax returns are emailed to client on completion. Please retain a copy for your records. Or give our office a call and we will be happy to send you a duplicate.

The easiest and fastest way to make an appointment is to call (909) 627 3161 or (951) 900 6777. We are able to accommodate remote appointments utilizing phone/zoom. 

Alternatively, you can access our scheduling portal here to book online.

The following are required for your corporation: 

1. Secretary of State Statement of Information: Due Annually depending on incorporation date. 

2. City of LA Annual Business Tax: Due Annually in February if your business is in LA County.

3. Payroll. The IRS guidelines state a "reasonable payroll" is required. Due Quarterly. 

4. 571-L : Due Annually in May 

5. Minimum Franchise Fee $800 Due Annually April 15th. 

6. Corporate Minutes: Due Annually 

7. 1099’s (As needed) Due Annually 

8. Sales Tax (As needed for resale and service industries) Due dates vary. 

9. NEW IN 2024 BOI due 90 days after inception of new corp and anytime there are material changes in business ownership.

LLC / PARTNERSHIP
Limited Liability Company (LLC) is probably the most popular type of entity to start. But did you know without a partner or another member you are a disregarded entity for tax purposes?

Which means unless you elect otherwise you will be taxed as a Sole Proprietor or Schedule C. There are ways around this, we can help you apply for an S Corp election.

Generally, an LLC is a flow through entity. Which means monies made are not taxed at a corporate level. They are tax at the individual level.

S CORPORATION
S Corporations are also flow through entities. Which means the net income or loss recorded on the business flows through to the shareholders tax returns and they pay the tax on income on the personal level.

C CORPORATION
Are NOT flow through entities. Which means if the corporation makes money it is taxed on the corporate level. If the corporation loses money, it is carried over forward to use against taxable income in an upcoming year.

Also in a C Corp when money is distributed it is also taxable. Therefore earning the infamous “double taxation.” Why would anyone become a C Corp? Well there are some industries mandated by law to be a C Corp, and there are other reasons a company might prefer this status. But for most clients this is not relevant.

STILL CONFUSED ? IT’S OKAY! WE GOT YOU.
If you are confused which tax classification or entity makes sense. Give us a call and we can discuss what makes the best sense for your business. NOT all businesses are treated the same. Not all business use the same strategy. You need an accountant who understands your industry, and can help you correctly expense your business deductions so you can reduce your tax liability. We can help! 

The annual obligation to run the corporation is $3,500 annually. This includes min. franchise fees, payroll fees, tax return preparation, annual minutes, and SOI statements.

The IRS has stated an S Corp by law must run a payroll for any shareholders who actively participate in day to day business. By not running a payroll for your S Corp you jeopardize your S Corp status and potentially expose yourself to being charged payroll taxes on your entire profit. It is not only enough to put your shareholders on payroll, but the IRS reaches even farther to say the salary must be "reasonable." What is reasonable? Give us a call or email and we will be happy to help advise.

In past few years the state of California has enacted AB-5 and AB-95 and CA EDD has started to audit businesses who issue 1099's; their goal is to find out: Are these really subcontractors ? Or are they employees? If you are unsure if you are correctly classifying your subcontract labor, please give us a call or email and we will be happy to help advise you on the correct classification. 

If you are a single member LLC (disregarded entity for IRS purposes) you do not put yourself on payroll, but you do put your employees on payroll. Likewise partners in a partnership do not receive payroll instead they are given guaranteed payments which are reported on their K1. If you need help determining your guaranteed payment, please reach out and we will be happy to help.

One tell tale sign that a companies books are not being documented correctly is the Balance Sheet. One common mistake is mis-categorization of income and expenses. It is fairly obvious when accounts receivable and payable have large negatives. Is your company guilty of this? No worries, our team of accounting experts can help clear up your Balance Sheet to reflect your companies accurate Balance Sheet. 

Another common accounting mistake is not reconciling. So many times when a company is in audit, the first step the auditor makes is checking to see has the company reconciled? And if the answer is no, then we can almost guarantee there are "hanging items" that have never been cleared, which means the company took a deduction for an item they didn't pay for, which means these expenses can be disallowed by the auditor. Do not make this mistake. We understand this is a tedious and frustrating task and our bookkeeping clients receive the benefit of us handing all their reconciliation needs. 

The major faux pas in doing your own accounting is mis-categorizing expenses and not allowing your business to deduct what is a valid business expense. In our years as financial analysts we have witnessed hundreds of companies leave money on the table by not correctly accounting for all their business expenses. Let us help you save thousands of dollars by taking the stress of accounting off of your hands while you focus on your business growth.