C Corp vs S Corp Status
New Small Business Jobs Act Offers Numerous Tax Incentives
On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 , or H.R. 5297 (hereafter, “the Act”). Though many of the Act’s provisions focus on small businesses , the new law also contains tax incentives that apply to all businesses as well as new retirement savings incentives for individuals . It is important to note that some of these provisions offer taxpayers a very small window of opportunity, requiring action before the end of the year to take advantage of the savings. INCENTIVES FOR ALL BUSINESSES The Act enhances and extends a number of tax incentives that were originally included in the Economic Stimulus Act of 2008 (“the 2008 Stimulus Act”) and the American Recovery and Reinvestment Act of 2009 (“the. Read More.
For Tax Purposes, Should Your Business Be Set Up as an S Corp or a C Corp?
In light of potential tax rate increases currently under consideration by the President and Congress, Karen E. Klein of BusinessWeek recently spoke with Lester Law, senior vice president at U.S. Trust’s National Wealth Strategies Group, to discuss why small business owners might want to consider changing their C Corp. or S Corp. status, accelerating income, or deferring compensation: Right now, we’re in a holding pattern. But we anticipate, based upon what has been put out there by the President and the Congress, that we will have a higher income tax for certain individuals. There are a number of bills that have. Read More.