Business Tax Services
Business taxes
Optimize Your Business Taxes
Streamlined and Convenient Business Tax Return Services
With Reinspired Books, accuracy is our priority. We meticulously review your financial statements, accounting for every expense and ensuring your income is accurately reflected for your tax returns. When we manage your monthly bookkeeping and accounting tax season becomes stress-free. We conduct thorough reviews, reconciling your books to ensure accurate balance sheet and income statement figures. This covers income, liabilities, and capital accounts, along with proper asset recording for optimal depreciation benefits. Even if we don't handle your monthly bookkeeping, rest assured, we'll perform a year-end review to ensure everything aligns.
Our services include but are not limited to:
C-Corps - Federal Form 1120 & State Return
C-Corporations pay taxes at the company level, resulting in one tax bill. But here's the twist: when owners receive dividends or salaries, they face taxation again. This is known as double taxation.
C-Corps are often favored by larger enterprises and public companies due to their unique taxation structure. Shareholders find them attractive because of the favorable tax rate for qualified dividends, capped at a pleasing 20%. However, it's a different story for ordinary dividends, which can go as high as 37%.
When incorporating your business and registering your EIN, a C-Corp is the default classification.
For more information on filing your annual return, please don't hesitate to reach out to us.
S-Corps - Federal Form 1120S & State Return
S-Corporations, designated for small businesses, require an application process with approval from the IRS. Unlike C-Corps, they operate differently in terms of taxation. Instead of paying taxes at the company level, S-Corps distribute the shareholders' share of income or loss at the individual level. This information is then reported on their personal tax returns.
It's worth noting that S-Corps have a unique requirement - owners must receive a reasonable wage, a detail closely examined by the IRS.
For many small business owners, S-Corps present a compelling choice due to the benefits they offer, including a reduction in self-employment taxes on your personal return.
Keep in mind that proper and timely tax filing is essential. Failure to file taxes or request an extension by the deadline can lead to hefty late-filing penalties for each partner or member.
For more information on filing your annual return, please don't hesitate to reach out to us.
Partnerships/LLC - Federal Form 1065 or Federal Form 1040 Schedule C 1040 & State Return
If your business has multiple members and hasn't officially incorporated as an S or C Corporation, you'll automatically fall into the category of a partnership. Partnerships are reported using Form 1065 and are the default classification when applying for your EIN.
Now, if you've chosen to structure your business as an LLC (Limited Liability Company), things can get a bit more diverse in terms of tax classifications. Similar to S-Corps, the income or loss of the business flows through to the members or partners. Let's break it down further:
Single Member LLCs These are considered disregarded entities, taxed similarly to a sole proprietorship, and are reported on Federal Form 1040 Schedule C.
Multi-Member LLCs LLCs with two or more partners or members file Form 1065. Each partner then receives a K-1 form, reporting their share of income or losses on their personal tax returns.
LLCs also have the option to elect S-Corp taxation, which can provide benefits, including reduced self-employment taxes. However, it's crucial to evaluate whether this election is advantageous for your specific tax situation. Sometimes, the costs of electing S-Corp status may outweigh the benefits.
Keep in mind that proper and timely tax filing is essential. Failure to file taxes or request an extension by the deadline can lead to hefty late-filing penalties for each partner or member.
For more information on filing your annual return, please don't hesitate to reach out to us.
State and Local Taxes
Sales & Use Tax
Sales and use tax is a state-level tax imposed on the sale of goods and certain services. It's important for businesses to collect and remit this tax to the state where the transaction occurs. This tax ensures fair revenue distribution for local projects and services.
Pass Through Entity Taxes (PTET) and Unincorporated Business Tax (UBT)
PTET applies to businesses structured as pass-through entities, where income "passes through" to owners' personal tax returns. UBT is specific to unincorporated businesses operating in New York City. Both taxes are essential for entities structured in this way.
Highway Use Tax (HUT)
HUT is a tax imposed on motor carriers operating certain vehicles on New York State public highways. It helps cover the costs of highway maintenance and infrastructure improvement.
Fuel Use Tax/International Fuel Tax Agreement (IFTA)
IFTA applies to interstate motor carriers, simplifying the reporting of fuel use taxes. It ensures that carriers pay taxes proportionate to the distance traveled in each participating jurisdiction.
Alcoholic Beverage Taxes
These are specific taxes imposed on the production, distribution, and sale of alcoholic beverages. Rates and regulations vary by state, but they are a crucial source of revenue for state governments.
For more information on filing state and local returns, please don't hesitate to reach out to us.