Advantages & Disadvantages of S Corporations

Whether you are setting up a new company or you have been in business for years, you need to evaluate which legal structure is best for your enterprise. No one option is best for every type of operation. The right choice depends on several factors including the number of owners, taxes and your business goals. These concerns lead many business owners to organize as S corps. The legal structure is similar to a C corporation, but S status provides an escape from double taxation. Since choosing a business structure may be a complicated process with long-range consequences, you should consult your Smith Schafer tax professional. Here are some of the pros and cons of S corps:

 

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2017 Year-End Advice

As the end of the year approaches, we want to remind you of various payroll and Form 1099 related changes. As well as other items to consider when processing your year-end forms.

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IRS Increases Annual Gift Tax Exclusion for 2018

The IRS has announced the annual gift tax exclusion is increasing next year due to inflation. After five years of being at $14,000, the exclusion will be $15,000 per recipient for 2018 — its highest point ever. Here is what the recent increase in the exclusion may mean for you, including how annual gift-giving can lower your taxable estate.

 

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Nonprofit Industry: 2018 Accounting Standard Changes - Part 5

Part 5 - Implementation

Watch this five-part series video regarding the 2018 Accounting Standard Changes.

EFFECTIVE FOR YEARS BEGINNING AFTER DECEMBER 15, 2017.

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Nonprofit Industry: 2018 Accounting Standard Changes - Part 4

PART 4 - INVESTMENT INCOME, STATEMENT OF CASH FLOW & CAPITAL GIFTS

Watch this five-part series video regarding the 2018 Accounting Standard Changes.

EFFECTIVE FOR YEARS BEGINNING AFTER DECEMBER 15, 2017.

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Nonprofit Industry: 2018 Accounting Standard Changes - Part 3

PART 3 - NET ASSET CLASSIFICATION

Watch this five-part series video regarding the 2018 Accounting Standard Changes.

EFFECTIVE FOR YEARS BEGINNING AFTER DECEMBER 15, 2017.

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Nonprofit Industry: 2018 Accounting Standard Changes - Part 2

PART 2 - FUNCTIONAL EXPENSE REPORTING

Watch this five-part series video regarding the 2018 Accounting Standard Changes.

All nonprofits shall report information about all expenses in one location:

  • on the face of the statement of activities;
  • as a schedule in the notes to financial statements;
  • or in a separate financial statement (statement of functional expenses)

EFFECTIVE FOR YEARS BEGINNING AFTER DECEMBER 15, 2017.

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Nonprofit Industry: 2018 Accounting Standard Changes - Part 1

PART 1 - LIQUIDITY

Watch this five-part series video regarding the 2018 Accounting Standard Changes.

QUALITATIVE (LIQUIDITY) Disclose information on how the entity manages its liquid resources available to meet cash needs for general expenditures within one year of the date of the statement of financial position.

EFFECTIVE FOR YEARS BEGINNING AFTER DECEMBER 15, 2017.

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Impact of New Lease Accounting Rules on Construction Companies

The new lease accounting rules will have a big impact on the financial statements of construction companies leasing property, equipment, vehicles and other fixed assets. The new lease rules go into effect for public companies with fiscal years beginning after December 15, 2018 and December 15, 2019 for all other companies. 

 

Below are five ways the new lease rules may affect your construction company:

 

  1. Current leases will be incorporated in the change. 

The terms of current leases are most likely going to continue into 2019 and beyond, meaning every lease you enter into now is going to be presented differently on your future financial statements.

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Save Taxes While Controlling Employee Health Costs

If rising health care costs have sent your company searching for ways to reduce expenses, you should know there are alternatives to standard medical insurance plans. Your choices are not limited to either paying the higher costs yourself or transferring the burden to your employees. Tax-advantaged strategies are available which can mitigate the effect of rising costs for you and your staff members. Here are three ideas to consider:

 

1. Establish a Health Insurance Premium-Only Plan (POP)

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