Tax preparation and compliance for

Individuals Federal Tax Returns 1040

Form 1040 are due by April 15th of the following year or you must requisition an extension of time to file to avoid penalties.  The extension extends the deadline until October 15th. The 1040 is for filing your wages, interest, dividend, rental, and business income along with the sale of stock and bonds.   There are home sale exclusions for the first $500,000 of gain on the sale of your personal residence.  The itemization of property and state income taxes along with mortgage interest and gifts to charitable origination may also be deductible.

US Return of Partnership Income Form 1065.

Partnership are tax transparent and do not pay income taxes.  The taxes are paid by the individual partners. A partnership's return is prepared to report out total partnership sales, expenses, and profit.  The Partner’s share of Income, Deductions, Credits, etc are report on a K-1 for each partnership.  The partnership must provide each partner with a K-1 or face stiff penalties.

Limited Liability Companies

LLCs are a fairly new entity structure.  Created in 1977 in Wyoming, it took the Federal government 11 years to figure out how to tax LLC – sort of.  An LLC elects how it wishes to be taxed.  An LLC can choose to be taxes as a sole proprietorship on a Schedule C on the 1040, a partnership, a Subchapter S or a regular corporation.

Most LLC owner fail to make a timely election and must prepare a late election.  Which form of taxation to elect is based on various factors which should be discussed with a tax professional

Subchapter S Corporations

Subchapter S Corporations, created in 1946 by the efforts of Misters Harry Truman and Dwight D Eisenhower, are designed to eliminate the double taxation caused by Corporations.  Prior to their creation Corporate owner paid taxes on their salary and dividends, and the corporation paid taxes on its earnings.  Subchapter S Corporation are tax transparent and do not pay taxes.  Taxes are paid by the shareholders – as in partnership.

A Tax Return 1120S is filed annually with K-1’s going to the individual shareholders.

Subchapter S Corporation have pluses and minuses.  Get professional advice before jumping into this pond.

Corporations file a 1120

Corporations fire a 1120 tax returns and pay tax on their earnings.  Owners must be paid a salary, requiring employment tax returns.  Avoiding double taxation on earning is a major importance. Active management of income is a must to legally avoid the double taxation associated with corporate earnings.

Trusts and Estates file form 1041

US Income Tax Return for Estates and Trusts.  Estates normally are short term entities while a personal final estate is wrapped up and distributed to the heirs.  Trust can be very or very complicated.  If you have a revocable trust, you need to include the trust income as part of your personal taxes.  If you have some other type of trust, please bring your trust document when you visit with me.

Texas Franchise Returns

The State of Texas requires all companies with nexus in Texas to file an annual Franchise Tax Return form 05-158, and a Texas Franchise Ownership Information Report Form 05-167.  Tax are due once a company sell in excess of $1,180,000.  Failure to fill these report results in fines and the loss of your Texas Franchise rights. Getting the franchise rights re-instated is not difficult once the returns are filed and the penalties and fees are paid.

Accounting and Finacial

Business owners are in maybe land when they lack the knowledge of their business finances. Not knowing your business numbers will keep you from planning what should or could come next.  Do not let annual taxes catch you by surprise.  A business owner needs more than the annual tax return to detail the business earnings. 

We provide affordable monthly financial statements.  You will know your operating results, allow you to set realistic goals and plan for success instead of leaving up to guess and by golly

Record keeping is a must and the most important "tax tip" for paying the lowest and correct amount of taxes. Keeping receipts and maintaining the all-important "contemporaneous logs" is a must and there is technology that can help you.

Keeping the books and records. I offer after the fact bookkeeping to facilitate business empowerment. Knowing the numbers lead to developing strategy to grow the business and using the associated costs to lower business taxes.

I offer a full rest a chief financial officer service to clients. I believe it is a holistic approach to advising my CFO business clients. Its not enough to develop a great business plan when the personal finiancial is badly bleeding.

The CFO service includes access to me as you need to address your business issue. I also self-initiate conversations when I see opportunities in the day to day business environment. Sometimes a gentle rebuke is necessary to keep a person out of trouble. Sometimes a Gibbs Slap helps. If I didn't care about you, I would not butt in.