Business Tax Services

Business Tax Planning

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Sometimes individuals and companies are surprised by the amount of corporate tax that is owed at the end of the year. Proper federal income tax planning throughout the year can eliminate these surprises. At Fredrick James, we offer a comprehensive array of company tax consulting and business tax planning services that will allow you to plan ahead and avoid unsettling surprises when tax season arrives.

The road to success for a new business begins with careful attention to federal income tax planning. The IRS takes this very seriously, and failure to consider all of the implications of how you will structure your business for corporate tax purposes, as well as how and when you will pay your taxes can lead to huge problems in a short period of time. Consulting with the professionals at Fredrick James can ease your mind, keep you out of trouble, and ultimately save you money on your tax bill.


Tax Planning for a New Business

Along with the many other decisions you’ll have to make while preparing to start your new business is deciding on the best tax entity for your situation. Each tax designation comes with different taxing structures and filing requirements. We can help you learn about your choices and choose the one that will give you the greatest long-term tax benefit. Starting out with the right tax entity will add to a solid foundation of planning that will help lead you to success.

Explore the possibilities for your business with us and we'll help you discover the business entity that is right for you! Once you've decided which entity is right, we are available to file for your corporate status, ensuring your paperwork is handled correctly the first time. The Associates at Fredrick James have provided Tampa Bay and Clearwater, FL business setup and tax planning services to many, now successful, businesses. Won't you give us the opportunity to help you too.


Effective Business Tax Planning:

  • Accurate Estimated Tax Payments
    Eliminate corporate tax penalties for insufficient quarterly payments.
  • Reduced Income Taxes
    Find out if structuring transactions a different way will result in lower taxes.
  • Improved Cash Flow Management
    Avoid large company tax payments at the end of the year.
  • S Corporation/Partnership Tax Planning
    Find out how changes in net income will affect owners on their respective individual tax returns.
  • There are many other benefits from executing tax planning throughout the year.
    Fredrick James will assist you in taking a proactive approach in dealing with income taxes

Overview of Business Entity Types

Sole Proprietorship

  • Does not require setting up a separate legal entity
  • Provides no owner liability protection
  • Any net income will be subject to self-employment tax in addition to income tax

Partnership

  • Does not require setting up a separate legal entity
  • Provides no owner liability protection
  • Income is not taxed at the partnership level but flows through to the partners' individual tax returns
  • Net income apportioned to general partners will be subject to self-employment tax in addition to income tax
  • Any income apportioned to limited partners will not be subject to self-employment tax
  • Capital distributions to partners are not taxed

C Corporation

  • Requires setting up a separate corporate legal entity
  • Provides some owner liability protection
  • Net income is taxed at the corporate level
  • Any dividends paid to shareholders are taxed at the individual level, resulting in double taxation
  • Fringe benefits paid to certain owner-employees is deductible at the corporate level and not considered taxable income on the owners' individual tax return

S Corporation

  • Requires setting up a separate corporate legal entity
  • Provides some owner liability protection
  • Income is not taxed at the corporate level but flows through to the shareholder's individual tax returns
  • Capital distributions to shareholders are not taxed
  • Fringe benefits paid to certain owner-employees is deductible at the corporate level and considered taxable income on the owners' individual tax return
  • Limited Liability Company (LLC)
  • Requires setting up a separate legal entity
  • Provides some owner liability protection
  • For tax purposes, a LLC be can set up as a sole proprietorship, partnership, C corporation, or S corporation

Call Fredrick James today at (727) 474-0922 to schedule a free consultation to find out how we can help with your federal income tax planning!

Contact Fredrick James Today!
Call our Clearwater, Florida Business Tax Accountants at (727) 474-0922 to schedule a free consultation to find out how Fredrick James can save your business money!

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