Category Archives: Corporations

California Businesses Released from Catch-22

News Courtesy of Spidell Publishing: Governor signs two important tax bills (09-24-18) Governor Brown has signed AB 2503, which makes a domestic corporation and a limited liability company subject to voluntary or involuntary administrative dissolution or administrative cancellation if: The entity either never did business or filed returns/paid tax when it was operating and has no […]

VCSP – Employer Amnesty for Mis-Classifying Employees

Intro paragraph: Employers – PLEASE PAY ATTENTION NOW! You can no longer get away with treating employees as freelancers. Aside from several recent court decisions, there are too many ways for your employees to turn you in to the IRS and state authorities. After all, if the employees don’t want to pay YOUR half of the […]

Switching from Employee Status to Independent Contractor

Today TaxMama® wants to give you something to think about before switching from employee status to independent contractor.  

Unused LLCs and Corps

Today TaxMama® hears from several people who have questions about tax returns for entities they created – but never used. This recent question from Debbie, on behalf of one her clients, is far too common.    

Income Distribution or Payroll?

Today TaxMama® hears from ASquare in the TaxQuips Forum with this question. “I work as a full time employee for a company on W2. I own S-CORP that i get income for the services provided in my free time. Do I need to run the payroll for that money earned on S-CORP or can I […]

Mandatory Distribution

Today TaxMama® hears from Patricia in the TaxQuips Forum, with this question.  “I have a client who is 70.5 and working for his own company. He has a 401k plan. Does he have to start taking distributions from his 401k because he is 70.5, even though he is still working? Can he still contribute to […]

Shut it Down

Today TaxMama® hears from Jeb in the TaxQuips Forum, with a long, complicated issue.  Let me summarize. “We want to close down our 3-member LLC, but there are outstanding issues. The CPA says we all need to file extensions, but one member has a big refund and wants it now. What can we do?”

S Corporation Overview

Today TaxMama® hears from someone in the TaxQuips Forum, who keeps asking similar questions about California LLCs and Canadian Limiteds owning an S Corp.  So, let me tell you a little bit about S Corporation rules.

LLC as C Corp

Today TaxMama® hears from Shar in the TaxQuips Forum, with this observation.  “If you start an LLC and elect to have it be taxed as a C-Corp, does this election require you to follow all the ongoing requirements of your state for maintaining a C-Corp (corporate minutes, complete set of books, etc.)? Or can you […]

Corps and 1099s

Today TaxMama® hears from Bill in the TaxQuips Forum.  Bill insists that for payments made in 2012, we do not have to send 1099s to corporations. TaxMama says, she just read that corporations DO get 1099’d. Who is correct?