What Is the Basis for My S-Corporation?

What Is the Basis for My S-Corporation?

Do you remember that 1998 New Radicals pop song called “You Only Get What You Give?” We’re as surprised as you are that the song isn’t about S-Corporation basis. Regardless, it’s “basically” how basis works. Your S-Corporation basis is your individual equity in the S-Corporation. When you contribute funds or other property into an S-Corporation, your basis increases. When you pull income out of your S-Corporation, your basis in the S-Corporation decreases. Often different shareholders in an S-Corporation start with equal basis amounts, but each shareholder’s basis can diverge through the life of the business. In this article we’ll cover…
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When Should Your Therapy Practice Become an S Corporation?

When Should Your Therapy Practice Become an S Corporation?

You’re around the table at dinner sharing a drink with your friends (beer, wine, non-alcoholic — we don’t judge). Your friend says, “You know, ever since I elected my PLLC to be treated as an S Corporation, I’ve just been flabbergasted at the tax savings. Sure, there’s some added complexity and I have to shell out payroll taxes now, but it’s worth it. Trust me!” Your other friend chimes in, “Yes, but first you have to make sure that it’s worth your while. At lower amounts of gross income, the tax benefits just don’t pan out and you end up…
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Can I Do My Own S-Corporation Tax Return?

Can I Do My Own S-Corporation Tax Return?

You’ve set up your S-Corporation, you’ve figured out a reasonable compensation (hopefully with the help of a professional), you’ve weathered a whole year of ups and downs, and your business has lived to tell the tale. Unfortunately, we all know that one of the rewards of a successful year of business is paying taxes on your income. Before you became an S-Corporation, maybe you did your own Schedule C and you’re looking to continue doing your own taxes. Can you do your own S-Corporation tax return? The short answer is yes, but we don’t recommend it. Here’s why: https://youtu.be/6FViTx3wlLA The…
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