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Action Tax Services LLC

Incorporation

#1 TAX TIP FOR SMALL BUSINESS OWNERS

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Ways To Grow Your Business

If you are just getting started on a new business, there are a plethora of resources on the internet to assist you in getting it started, including this great one Small Business Administration

At Action Tax we also provide a free consultation for getting your business started. It includes all of the things listed in the link above, plus a powerful list of over 280 ways to advertise and grow your business.  READ MORE

 

Protect Your Assets and Take Your Business to the Next Level!

The type of business structure you have in place determines everything.

WHY INCORPORATE ?
The #1 most overlooked tip by people running side businesses is that they fail to setup a business entity because they still view their business as a little side business that they will incorporate when things take off.

Sole Proprietorships (the business structure you default to if you fail to setup a Corporation, LLC, etc) are subject to the highest audit risk out of all the business structures. The reason for this high audit risk is that all Sole Proprietorships report their business income and expenses on Schedule C (the second most highly audited form that you can attach to your tax return). By setting up an S Corporation, you become nine times less likely to be selected for a random IRS audit (audit risk decreases from 2.7% to .3%) making it very possible that you can go your entire life without ever being selected for an audit.

Sole Proprietorships are subject to the highest tax rates. As a Sole Proprietor, you end up paying your regular income tax rate plus an additional 15.3% Self Employment Tax. This means that if you are in the 25% tax bracket, you are essentially paying 40.3% tax. S Corporations typically enjoy a lower tax rate due to payroll taxes taking the place of Self-Employment Taxes. So, if you are in the 25% tax bracket, you end up paying somewhere between 25% and 40.3% depending on the nature of your business, profit levels, etc.

Operating a Sole Proprietorship means that your personal assets are completely exposed during your business operations. If someone sues you for a business related matter, you could end up losing your house, your savings, your retirement, and everything else you own. By setting up an S Corporation, you protect your personal assets from business related lawsuits and all you can lose are the business assets. (About.com, Michael York, 2014)

S-CORP ADVANTAGES

Action Tax is focused on saving small businesses time and money. One resource we offer to fulfill this is setting up the right taxable entity for your business. S-Corp Advantages
TAX SAVINGS IS $10,353 IN FIRST YEAR.
(This is real cash savings in just the first year of the incorporation!)

When taxable income reaches $11,000 you pay for the cost of incorporating in just the 1st year's tax savings.

Other Advantages of S Corporation:
  • Owner is an employee, and gets a paycheck and W2 and end of year, if the company pays the shareholder salaries.
  • 100% of employer’s payroll taxes, when paid salary, are deducted from net taxable income of business (not 50%).
  • Rent can be taken at any reasonable amount to decrease taxable income, and ideally the amount is the full amount that can be sheltered with expenses.
  • As an LLC taxed S Corporation, the entity is legally independent from its shareholders. The shareholders can take up to the net income in non-taxable dividends (just like in a Sole-Prop), at no tax consequence.
  • Lawsuits, bankruptcies, injuries and other damages are not passed onto shareholders, unless they sign personal guarantees on loans.
  • Corporate entities can easily be sold, or shareholders added, and the corporation lasts beyond death of the shareholder.
What are you paying for?
  • We do all the filing with the State and Federal Taxing Authorities, and pay all initial fees associated with setting up the new entity.
  • We will assist you in preparing your first quarterly tax reports.
  • We help you determine the date at which your corporation will ideally become effective.
  • We provide the initial consultation, answer all of your questions, and include a Tax Planning Consultation following the set-up.
 Next Steps:
  • Determine if the liability protections, tax savings, tax shelters, and corporate structure are beneficial to your particular business now and ongoing.
  • Complete our simple application to set up the corporation.
  • Schedule your document signing appointment, and plan your included professional tax consultation with our staff.
 

Schedule A Free Consultation

with our CPA & Tax Professionals Today. You could save big as an S Corp.  CALL: (253) 288-8829 / TEXT: (253) 553-2174 

What Our Clients Say About Us
I had an exceptional experience with Action Tax! They were clear, concise and answered all my questions. They got everything done faster than I expected too. Norm

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Action Tax LLC. does one-on-one Quickbooks training for business owners.  As Certified Quickbooks Pro Advisors,  we provide Quickbooks assistance onsite and in person. We also have Quickbooks team trainings which are conducted online.”

Action Tax LLC Provides Income Tax & Business Services to Clients All Over the USA

Located in Washington State, Action Tax LLC provides Income Tax and Business Services to Clients throughout the State including the surrounding cities of: Auburn, Federal Way, Sumner, Algona, Renton, Kent, Edgewood, Milton, Puyallup, Enumclaw, Buckley, Bonney Lake some Seattle and Tacoma Locations including King County and Pierce County Businesses.

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TAX SEASON: Monday - Saturday 8:30AM - 6PM
From April 16 – January 15th,
Hours: Monday - Friday 9AM – 4PM
*When you call, we can accommodate a special time by "appointment only" outside of these hours.
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