Posted 12/12/09 at 11:20 AM | John Dillard
Strategic Offer in Compromise Consideration & Submission by Atlanta CPA
Like Nehemiah in the Old Testament we are to be both thoughtful, insightful and full of preparedness as you ready yourself to submit an Offer in Compromise. Rather than "throwing paper at the IRS" it is prudent to spend an adequate amount of time and planning to ensure that you have an Offer that is able to be accepted, and not rejected because of its failure to consider all of the many and varied rules and regulations of successful IRS Representation and Offer in Compromise acceptance. It is always prudent to explore all of the available and appropriate options before rushing to submit and Offer in Compromise that is not processed. Below is a sample inquiry we might receive and the following, our response:
Posted 12/11/09 at 7:33 PM | John Dillard
Atlanta CPA Addresses Startup Issues Facing New Business Owners: What You Don't Know Can Hurt You
We frequently received and inquiry of a new business owner exploring their options and how to best address their issues and concerns. To assist in guiding other new entrepreneurs I have included my answers after each corresponding question:
What is the least I need to contract work to others (paper agreement)? One of the most maligned and misunderstood sections of tax law centers around proper classification of a worker as an employee or an independent contractor. The fact that you choose to pay someone as an independent contractor, when you treat them as an employee, will not preclude you from payroll tax or general liability issues. A careful review of the tax law, established guidelines, as well as a fair and just review of your own facts and circumstances will more aptly enable you to follow the rules to the letter of the law and also its spirit. This issues of how you are legally required to pay your workers predominantly centers around how you treat your workers, while centering around the issues of control, risk of loss and behavioral issues. In layman's terms the more you tell a worker how to do a job, the terms and the conditions the more likely the worker is an employee.
What is the overview to become an LLC? Limited Liability Companies (LLCs), Limited Liability Partnerships (LLPs) and General Partnerships are all taxed in the same manner. Choosing one of these types as a business entity would be a poor selection for a business such as a print shop, as they will all result in higher taxes with no additional advantages for the printer. We have developed a mindset that if you do not need to be another entity type then you need to be an S Corporation. For example, generally speaking a printer that was an LLC, LLP, or Partnership will pay higher taxes with no additional advantages as opposed to being an S Corporation. A Limited Partnership is also an option that could be explored when certain partners want to limit their liability and exposure. Below are some of the reasons you might want select an LLC or LLP as your entity choice:
If you were a lawyer or physician's practice then all of the partners' personal assets are at risk if one partner does something wrong, while if an LLC or an LLP, only the offending partners personal assets would be at risk. This is because of the professional service statutes for these types of professionals, but these rules do not relate to our printer.
If you were a real estate developer and you had a piece of land that had dramatically increased in value, you can transfer that property to an LLC, LLP, or Partnership without having to pay any capital gains tax. Also with these entity types, you can take shareholder distributions that are not based upon ownership, whereas in an S or a C Corporation they have to be. Again, this does not relate to our printer client.
John Dillard is an Christian Speaker/Author and an Atlanta CPA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life's 9/11's: Job's Journey and a Voice of One: Nehemiah's Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!
Posted 12/10/09 at 11:23 AM | John Dillard
IRS and the 2010 Mileage Rate Announced by Atlanta CPA
The IRS Just Announced the 2010 Mileage Rate as 50 cents per mile. This is down from the 2009 mileage rate of 55 cents per mile. The predominant cause for the decrease is a direct result of declining gas prices in 2009 versus 2008. Please keep in mind that tax law requires all taxpayers who use an auto for business use to keep a by day mileage log.
Posted 12/8/09 at 9:47 AM | John Dillard
Atlanta CPA on Incorporating Your Business: Get Started on the Right Financial Footing
Recently I had the below inquiry from our website. Desiring first to serve we focus on Serving the Atlanta Business Community even before they become clients:
We are a new business just outside Atlanta and are seeking a solid Business CPA to help us with our business, tax, and licensing issues. We are just getting our business started and want to ensure that we get it off on the right foot. We would appreciate your guidance in this area and look forward to hearing from you soon and all about of your payroll tax and withholding issues. FULL POST
Posted 12/7/09 at 2:56 PM | John Dillard
Atlanta CPA on Serving Others...Taking Christianity Into the World
"...Instead, whoever wants to become great among you must be your servant, and whoever wants to be first must be your slave- just as the Son of Man did not come to be served, but to serve, and to give his life as a ransom for many." Matthew 20:26-28
Posted 12/7/09 at 10:20 AM | John Dillard
Duluth CPA Provides Guidance on How Do I Find a CPA for My Business?
For those who have never hired a CPA before or are looking to hire a new CPA knowing what to look for will do much to ensure you have made a wise hire. If you are a business owner hiring a CPA whose practice centers and focuses on the needs of business owners is a very prudent part of the CPA retention process. Selecting a professional is a daunting task. This guide will enable you to be better able to select a professional whose talent, expertise, and style will best assist you long-term. The guide on our web site will do much to ensure that you have adequate and informed criteria to ensure chose wisely. For more information visit http://www.hiscpa.com/article8.html
Posted 12/6/09 at 12:44 PM | John Dillard
Metro Atlanta CPA Addresses IRS Representation Issues and IRS Request for Documentation
Attached is a sample letter one might use to address IRS Representation issues with the IRS. However, extreme caution should be exercised by taxpayers to ensure that they retain the services of a CPA who is experienced with tax representation issues and matters.
Posted 12/5/09 at 4:35 PM | John Dillard
Atlanta CPA on How to Determine What Your Withholding for S Corporation Owners/Shareholders
To preclude the responsibility for an S Corporation owner to also have to pay estimated tax payments to both the IRS & Georgia, it is prudent to work closely with your CPA to adjust/increase your withholdings accordingly.
A Georgia LLC, LLP, partnership or sole proprietorship, you are subject to the 15.3% Self Employment/FICA tax on all of your net earnings. The S corporation, on the other hand, pays you a deductible salary (which is subject to FICA), and then the profits flow through your personal return via a Schedule K-1. This K-1 income allows for permanent deferral of the FICA tax. The Georgia S corporation allows small business owners to legally save taxes as long as they pay a fair and reasonable salary to themselves. To learn more about how different entities are taxed visit http://www.hiscpa.com/article6.html
Posted 12/3/09 at 8:59 AM | John Dillard
Are You Adequately Planning for Your Retirement?
John, Quick questions for you: Is maximum contribution for a SEP IRA 25% of Pay? Thanks!
The maximum SEP IRA for 2009 as I understand it is up to 25% of your W-2 maximum of $245,000 or a 2009 SEP IRA of $49,000. However there are many options to explore. I suggest that we get together with a financial planner to discuss your present financial affairs, your long term goals, the right retirement plan for your business and the right investments reflecting both your risk tolerance and investment needs.
Posted 12/2/09 at 6:54 PM | John Dillard
Missions Lite: Radically Serving God...Taking Christianity Into the World
We do many things wrong as parents and I fail often, but fortunately we have two children who "get it." They know God, know who he is and serve him well. Recently my daughter was asked to provide a blurb the church could use on its website to which I have listed below. This Christmas and throughout the year, be still, seek God with all your heart and soul as you seek to serve others especially The Lost the Last & the Least.
Nowadays, on Thanksgiving, most people are used to the traditional family meeting around a colossal feast. But this most recent Thanksgiving was truly traditional. It's funny how you go on living and not really be aware of what's going on around you. Poverty, hardship, struggle rests on everyone's shoulders. But for some, it hits much, much harder.