Business Tax Services

Business Tax Services

Our Business Tax Services Division prepares federal, state and international tax returns for corporations, partnerships, sole proprietorships and LLCs. In addition to filing tax returns, our experienced tax professionals assist clients with developing long range tax and financial plans that are crucial to the success of any business. Our firm prides itself in its practice of tailoring the tax strategy for each client to the unique needs of their specific business.

The Business Tax Services Division provides each business they serve with cost-effective solutions for achieving both immediate and long-term business objectives. Through year-round tax planning and preparation, the tax professionals at Winter & Winter Insurance Services, Inc can help their clients implement strategies that minimize their tax liabilities for the current year. At the same time, they alert them to potential changes in business tax regulations in order to reduce future tax obligations. Our expert tax advisors also advise clients on tax compliance issues to minimize the risk of costly tax examinations and penalties.

Given the difficulty of interpreting and complying with complex and continually changing business tax laws, our business tax services are crucial to a successful business plan. The tax professionals at Winter & Winter Insurance Services, Inc keep abreast of the latest tax law changes and stand ready to assist your business with year round tax planning, tax preparation and compliance.

If you are a business owner seeking business tax services or business solutions, the licensed professionals at Winter & Winter Insurance Services, Inc. (www.wwisins.com) can provide you with the expertise you are looking for. Call us today at (866) 254-2996 or fill out our online request form to receive a free, no obligation consultation

Sole Proprietorship Tax

A sole proprietorship is a business entity that is operated by a single individual who owns all of the assets of the business. Since the finances of a sole proprietorship are not separate from the owner’s personal finances, the IRS treats a sole proprietorship as a single pass through entity. This being the case, the income of the sole proprietorship is reported on the owner’s personal tax return rather than on a separate business return.

The specifics of sole proprietorship tax:

  • The income of a sole proprietorship is reported on the owner’s personal tax return using Form 1040 and Schedule C.
  • Since a sole proprietorship is not considered to be its own separate entity, the owner is held personally liable for any debts or losses of the business.
  • The owner of a sole proprietorship must pay self employment taxes on the proprietorship income. No self-employment taxes are due for any year where there is a loss.Beyond these differences, the tax requirements of the sole proprietorship are similar to those of any other business entity. Employment taxes, including federal and state withholding taxes, workers’ compensation taxes, Social Security and Medicare taxes and unemployment taxes must be paid if the sole-proprietorship has employees. In addition, a sole proprietorship is responsible for paying any sales and excise taxes just like any other business entity.

If you are a business owner seeking business tax services or business solutions, the licensed professionals at Winter & Winter Insurance Services, Inc. (www.wwisins.com) can provide you with the expertise you are looking for. Call us today at (866) 254-2996 or fill out our online request form to receive a free, no obligation consultation

S Corporation Tax

An S Corporation is a business entity that functions as a corporation but is not taxed as an individual entity. S Corporations are able to avoid double taxation because they are not required to pay corporate income taxes on their profits. Instead, much like a sole proprietorship or a partnership, each shareholder reports the profits or losses of the business on their personal income tax return. However, unlike a sole proprietorship or a partnership, an S Corporation has liability independent from the owners/ shareholders.

The specifics of s corporation tax:

  • Although an S corporation does not pay income tax as an entity, it is required to file a corporate tax return using IRS Form 1120S.
  • The shareholders of an S Corporation must pay themselves reasonable compensation for their work and must pay taxes on this income.
  • Each shareholder is required to report their share of the profits or losses of the business on a Schedule K-1.
  • Some expenses of the shareholders of an S Corporation can be written off as business expenses.
  • The state tax requirements for S Corporations vary from state to state.

In addition to the specific tax requirements outlined above, an S Corporation must pay the standard employment taxes that are required of other business entities. These include withholding and reporting state and federal income tax, workers’ compensation tax, Social Security and Medicare tax and unemployment tax. The S Corporation is also responsible for paying sales taxes and excise taxes on its products and services wherever applicable.

If you are a business owner seeking business tax services or business solutions, the licensed professionals at Winter & Winter Insurance Services, Inc. (www.wwisins.com) can provide you with the expertise you are looking for. Call us today at (866) 254-2996 or fill out our online request form to receive a free, no obligation consultation

Corporation Tax

A corporation is a business entity that has legal privileges and liabilities independent of its owners. Unlike limited liability companies, sole proprietorships and partnerships, the profits of a corporation are taxed directly through the filing of a corporate tax return. The profits of the other business entities, on the other hand, are allowed to pass through to the owners who then claim them on their personal returns. A corporation is the only business structure that is set up as a separate entity, distinct from its owners, for tax purposes.

The specifics of corporation tax:

  • A corporation must file a corporate tax return with IRS Form1120.
  • A corporation pays taxes at the corporate tax rate which varies from about 15% to 35% depending on the income of the business.
  • The taxable profits of a business generally include retained earnings together with dividends that are distributed to the shareholders.
  • To reduce profits, a corporation is allowed to deduct business expenses which include start-up costs, operating expenses, salaries and bonuses and costs related to medical and retirement plans for its employees, among other things.
  • If shareholders work for the corporation, they must pay personal income taxes on any salaries or bonuses earned.
  • If shareholders receive dividends from the corporation, they must pay personal income taxes on these amounts. Since dividends are not considered to be a tax-deductible expense for the corporation, the corporate entity is also taxed on any dividends paid.

In addition to the specific tax requirements outlined above, a corporation must pay employment taxes for all of its employees whether they are shareholders or non-shareholders. These employment taxes include federal and state withholding taxes, Medicare and Social Security taxes, unemployment taxes and workers’ compensation taxes. A corporation must also pay sales taxes and excise taxes on its products or services wherever applicable.

If you are a business owner seeking business tax services or business solutions, the licensed professionals at Winter & Winter Insurance Services, Inc. (www.wwisins.com) can provide you with the expertise you are looking for. Call us today at (866) 254-2996 or fill out our online request form to receive a free, no obligation consultation

Partnership Tax

A partnership is a specific business entity created by two or more individuals. Each partner invests or contributes some asset such as money, property or a skill and, in return, agrees to share in the profits or losses of the business. A partnership does not pay income taxes as a business entity. Rather, each individual partner is considered to be self-employed and must pay self-employment taxes on any income gained from the partnership

The specifics of partnership tax:

  • Each partner is taxed on their share of the profits or losses of the business and must file a personal tax return to report these amounts.
  • The partnership must file an information return on Form 1065 to report any gains, losses, income credits or deductions from the operation of the partnership.
  • The partnership must file a K-1 for each partner.

Outside of these differences, partnership taxes are much like those of any other business entity. If the partnership has employees, employment taxes must be paid. These include federal and state withholding taxes, workers’ compensation taxes, Social Security and Medicare taxes and unemployment taxes. In addition, a partnership is responsible for paying sales and excise taxes just like any other business entity.

If you are a business owner seeking business tax services or business solutions, the licensed professionals at Winter & Winter Insurance Services, Inc. (www.wwisins.com) can provide you with the expertise you are looking for. Call us today at (866) 254-2996 or fill out our online request form to receive a free, no obligation consultation

Limited Liability Company Tax

A limited liability company (LLC) is a business entity that provides the company owners with limited liability protection. The tax requirements of an LLC are based on the number of members. While a single member LLC is taxed like a sole proprietorship, the tax requirements of a multiple member LLC are similar to those of a partnership. The owner of a single member LLC must report the income of the business on their personal tax return. Each member of a multiple member LLC is required to report their portion of the business income on a personal return while the business entity itself must comply with certain other tax requirements.

The specifics of limited liability company tax:

  • Members of an LLC are considered to be self-employed and must therefore pay self-employment taxes which are calculated using schedule SE.
  • The income of a single member LLC is reported on the owner’s personal tax return using Form 1040 and Schedule C.
  • Each member of a multiple member LLC must report their share of the profits or losses of the business on their personal tax return.
  • A multiple member LLC must file a K-1 for each LLC member and must submit an information return for the business on Form 1065.

If an LLC has employees, the entity must pay employment taxes, including federal and state withholding taxes, unemployment taxes, Medicare and Social Security taxes and workers’ compensation taxes. Like all other business entities, a limited liability company must also pay sales and excise taxes wherever applicable.

If you are a business owner seeking business tax services or business solutions, the licensed professionals at Winter & Winter Insurance Services, Inc. (www.wwisins.com) can provide you with the expertise you are looking for. Call us today at (866) 254-2996 or fill out our online request form to receive a free, no obligation consultation

Non-Profit Organization Tax

A non-profit organization is a business entity that operates primarily for the purpose benefitting the general public through charitable, educational, religious or scientific endeavors. Since the goal of a non-profit organization is not to obtain a monetary profit, most non-profit organizations use all of their proceeds to further their charitable causes rather than to realize a financial gain.

The specifics of non-profit organization tax:

  • A non-profit organization will only be granted federal tax exempt status if it meets specific requirements identified by the Internal Revenue Service.
  • An incorporated non-profit organization will generally be granted tax exempt status if it is organized and operated exclusively for charitable purposes and turns over the entire amount of its proceeds to the charitable purpose for which it was organized.
  • If a non-profit organization engages in any activities that are outside of the charitable purposes for which it was organized, it may be required to pay income taxes on any proceeds resulting from those activities.
  • Although a non-profit organization may be exempt from paying federal income taxes, the exemption from paying state income taxes varies according to the state.
  • Unincorporated non-profit organizations are not given federal tax exempt status.
  • When a non-profit organization is granted tax-exempt status, it may also be exempt from paying state and local sales taxes, property taxes and taxes on other assets. If the organization has paid volunteers, it is required to pay employment taxes for those workers just like any for-profit company. These taxes include federal and state income taxes, Social Security and Medicare taxes, workers’ compensation taxes and unemployment taxes.

If you are a business owner seeking business tax services or business solutions, the licensed professionals at Winter & Winter Insurance Services, Inc. (www.wwisins.com) can provide you with the expertise you are looking for. Call us today at (866) 254-2996 or fill out our online request form to receive a free, no obligation consultation

Tax Planning

Effective tax planning for a business involves accurately determining and projecting business income together with making maximum use of the available provisions of the tax to reduce the total amount of taxes owed. Since taxes are one of the major expenses of any business, effective tax planning is generally a necessary prerequisite for long term success.

Important Tax Planning Strategies:

  • Taking advantage of available tax credits and tax deductions
    The effective use of available tax credits and tax deductions can significantly reduce the taxable income of a business.
  • Correctly classifying a business to obtain the lowest possible tax rate
    Because each type of business entity is subject to different tax liabilities and tax rates, entity selection is an important element of effective tax planning.
  • Planning ahead to meet income, payroll and excise tax filing deadlines
    All tax payments must be filed appropriately and according to filing deadlines set by the collecting tax agencies.
  • Delaying or accelerating certain business activities
    A business may want to delay or accelerate certain business activities such as collection of payments, real estate acquisitions and equipment purchases in order take maximum advantage of the provisions of the tax code.
  • Negotiating a payment plan when necessary
    When sufficient funds are not available to cover impending tax payments, it is often beneficial for a business to negotiate a payment plan with the collecting tax agency before the payment is due.

Failing to make use of available tax planning strategies will often result in tax payments that are more than a business would otherwise need to pay. In addition, penalties and fines are frequently imposed by collecting tax agencies when a lack of tax planning causes a business to miss a filing deadline or have insufficient funds to pay the full amount of a tax bill. Because of the complexity of the tax code, effective tax planning for a business may involve enlisting the services of a qualified tax professional.

If you are a business owner seeking business tax services or business solutions, the licensed professionals at Winter & Winter Insurance Services, Inc. (www.wwisins.com) can provide you with the expertise you are looking for. Call us today at (866) 254-2996 or fill out our online request form to receive a free, no obligation consultation

International Taxation

While the tax code for businesses operating within the United States is complex, the tax code as it applies to multinational firms is even more so. Tax planning for an international company must necessarily take into account a variety of factors including foreign tax rates, tax treaties, profit repatriation, the foreign tax credit limitation and cross-crediting, among other things. Since these factors are interrelated and sometimes conflicting, compiling an effective tax strategy for a multinational company can be a very difficult task.

The specifics of international taxation:

  • The foreign income of United States multinational firms it taxed at the same corporate tax rate as the income of domestic firms which is currently a maximum of 35%.
  • The tax on foreign income of United States firms is generally deferred until the earnings are repatriated.
  • The current tax code allows multinational companies to avoid the tax on repatriated income if is invested in certain domestic assets such as bonds and bank deposits.
  • Multinational firms are allowed to claim a tax credit for income taxes paid to foreign governments up to their United States tax liability on that income.
  • The tax code allows multinational firms to use excess tax credits from income earned in high-tax countries to offset the tax on income earned in low tax countries, a process called cross-crediting.
  • The tax on income earned by United States firms in certain foreign counties is sometimes affected by tax treaties with those countries.

The professionals at Winter & Winter Insurance Services, Inc keep abreast of the intricate tax laws of differing international jurisdictions and use that knowledge to help their clients understand how foreign tax laws can affect their proposed business transactions. Our licensed professionals have had extensive experience with tax planning and preparation for companies that operate on foreign soil and use that expertise to ensure that their clients avoid the common pitfalls of operating in international tax jurisdictions.

If you are a business owner seeking business tax services or business solutions, the licensed professionals at Winter & Winter Insurance Services, Inc. (www.wwisins.com) can provide you with the expertise you are looking for. Call us today at (866) 254-2996 or fill out our online request form to receive a free, no obligation consultation

September 17th, 2015 by Winter & Winter Insurance