Income Tax Planning and Preparation
We understand the complex tax laws so that you don’t have to. The firm focuses on maximizing the permissible tax breaks whether it’s in the form of deduction, exemption or tax credit. We make sure that our clients get maximum benefit out of what is allowed by law as their share of deduction, exemption or tax credit. The firm specializes in preparing the income tax return for all types of businesses and individual returns and provides valuable advice with emphasis on tax planning. The tax planning aspect of preparing the income tax return has always maximized the benefits of tax breaks and reducing the tax burden on the taxpayer. Our clients have always benefitted from the tax planning advice provided by our firm that makes us stand apart from just income tax return preparation work. The firm prepares the return for the following entities:
Incorporating a corporation as a C Corp. is considered a separate entity liable to pay tax apart from the owners of the corporation. Double taxation does come into play when the entity is incorporated as C Corporation however it comes with certain added advantages as well. Medical reimbursement plan, raising money through venture capital, tax-free fringe benefits such as life insurance, disability insurance are some of the benefits available solely to C Corporation. Taxbiz Consulting provides valuable advice on all tax considerations available to C Corporation to ensure that the Corporation is not deprived of any of the eligible tax deductions in the preparation of Income Tax Return (Form 1120).
Corporations that have filed special election with IRS to be treated as pass-through entity for taxation purposes are considered as S corporation. The election helps in preserving the corporate’s limited liability but at the same time eliminates the corporate level taxation. This means that the profits/losses of the S corporation are passed through to shareholders in the same manner as partnership passes through such items to the partner. Taxbiz Consulting provides all types of services to the clients including consultation on converting C Corp. to S Corp., preparation of Income Tax Return of S Corp. (Form 1120S), Tax Planning related to available tax deduction, exemptions and tax credits etc.
Limited Liability Company (LLC) is unique blend of company and partnership wherein the business owners can enjoy the limited liability protection in the event of present and future judgments against the business. Key element of incorporating as LLC viz. pass-through entity, owner’s compensation in the form of distribution of profits, offsetting owner’s other income etc. are some of the tax benefits that make LLC most preferred business form of organization. Taxbiz Consulting provides consultation on incorporation as Single Member LLC (SMLLC), Multi-member LLC (MMLC), preparation of Income Tax Return of LLC, issue of Schedule K-1 in case of MMLLC, distribution of share of profits among members.
Partnership is yet another form of conducting the business wherein two or more person agrees to carry on trade or business with profit motive. The partners contribute towards the capital in the form of money, property, labor or skills etc. in return for mutually agreed ratio of sharing in the profits and losses of the business. Partnership is considered as pass through entity wherein all the profits or losses are passed through to the partners in the form of Schedule K-1 (Form 1065). Partners shall report their share of income or loss arising from Schedule K-1 on their personal income ax return. Our firm provides consultation on tax benefits of incorporating as Partnership, preparation of Income Tax Return of Partnership, issue of Schedule K-1 to the partners to name a few.
Incorporating the business as Sole Proprietor is considered as the business and the business owner as synonymous. The business owner has complete control of the business affairs but at the same time has inherent risk of business termination in case of illness/death of the business owner. Sole proprietor often faces difficulty in raising long-term capital due to the uncertainty involved in the business. Our firm provides consultation incorporating, as sole proprietor is best option based on clients’ facts and circumstances. Our firm also specializes in preparing the Income Tax Return for Sole Proprietor (Form 1040, Sch. C) along with the consultation on tax benefits available by law for operating as a Sole Proprietor.
Individual Income Tax Return
Every person who is citizen or resident of United States or resident of Puerto Rico must file an income tax return if the person is an individual, dependent, children under the age of 19 or full-time students, self-employed person or aliens. Our firm provides consultation on determining the filing status, eligible tax deductions, exemptions and tax credits in addition to preparation of income tax return. Our firm ensures that our clients take maximum tax benefits for the clients’ are entitled to. Our firm covers all of the following aspects of income tax preparation: