Qualified Business Income Deduction is a Tax Deduction for small business owners to deduct up to 20% of their qualified business income on their taxes.
A C corporation, under United States federal income tax law, refers to any corporation that is taxed separately from its owners
A C corporation, under United States federal income tax law, refers to any corporation that is taxed separately from its owners. A C corporation is distinguished from an S corporation, which generally is not taxed separately. Many companies, including most major corporations, are treated as C corporations for U.S. federal income tax purposes. C corporations and S corporations both enjoy limited liability, but only C corporations are subject to corporate income taxation.
In the United States, corporations are formed under laws of a state or the District of Columbia. Procedures vary widely by state. Some states allow formation of corporations through electronic filing on the state’s web site. All states require payment of a fee (often under USD200) upon incorporation. Corporations are issued a “certificate of incorporation” by most states upon formation. Most state corporate laws require that the basic governing instrument be either the certificate of incorporation or formal articles of incorporation. Many corporations also adopt additional governing rules known as bylaws. Most state laws require at least one director and at least two officers, all of whom may be the same person. Generally, there are no residency requirements for officers or directors. However, foreign aliens have to form corporations via registered agents in many states as an obligation.
Any distribution from the earnings and profits of a C corporation is treated as a dividend for U.S. income tax purposes. “Earnings and profits” is a tax law concept similar to the financial accounting concept of retained earnings. Exceptions apply to treat certain distributions as made in exchange for stock rather than as dividends. Such exceptions include distributions in complete termination of a shareholder’s interest and distributions in the liquidation of the corporation
Conduct market research. Market research will tell you if there’s an opportunity to turn your idea into a successful business. Then hire an accountant in Miami. Write a business plan. Fund your business. Pick your business location. Choose a business structure. Choose your business name. Register your business. Get federal and state tax IDs.
With just a few weeks left in 2012, Miami Accountants remind you there is very little time left to implement ideas that will result in tax savings for the year. Miami Accountants there are still some steps you can take: Section 179 Expensing: Furniture, equipment, software, vehicles and capital assets are normally subject to a …
Accountants Miami Year-end tax planning: Preparing for the tax cliff Accountants Miami can help clients cope with multiple tax hikes scheduled to take effect in 2013. Rarely has there been such a major difference between the laws in effect in one year and the next. The maximum income tax rates next year could be as …