Mastering the Rules of S Corporation Shareholder
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Mastering the Rules of S Corporation Shareholder-Employee Compensation Reporting Health Insurance Payments, ACA Requirements, and Meeting the Reasonable Compensation Standard THURSDAY, DECEMBER 3, 2015, 1:00-2:50 pm Eastern IMPORTANT INFORMATION This program is approved for 2 CPE credit hours. To earn credit you must: • Participate in the program on your own computer connection (no sharing) – if you need to register additional people, please call customer service at 1-800-926-7926 x10 (or 404-881-1141 x10). Strafford accepts American Express, Visa, MasterCard, Discover. • Listen on-line via your computer speakers. • Respond to five prompts during the program plus a single verification code. You will have to write down only the final verification code on the attestation form, which will be emailed to registered attendees. • To earn full credit, you must remain connected for the entire program. WHO TO CONTACT For Additional Registrations: -Call Strafford Customer Service 1-800-926-7926 x10 (or 404-881-1141 x10) For Assistance During the Program: -On the web, use the chat box at the bottom left of the screen If you get disconnected during the program, you can simply log in using your original instructions and PIN. Taxpayer’s Comprehensive Guide to LLCs and S Corps 2015 Edition (incrementally, but it’s a good one!) by Watson CPA Group Certified Public Accountants Copyright 2015 by Watson CPA Group 9475 Briar Village Point Suite 325 Colorado Springs, Colorado 80920 719-387-9800 www.watsoncpagroup.com All rights reserved. ISBN-13: 978-0692279649 (Watson CPA Group) ISBN-10: 0692279644 Team Profile Our book is written by the Watson CPA Group’s entire professional team to ensure accuracy and comprehensiveness. Here is a quick outline of our team members. Tina Watson, CPA, MBA Senior Partner Tina Watson became a Certified Public Accountant in 2003. Tina has both a Bachelor’s and Master’s in Business Administration and consults with a variety of small businesses including Defense Contractors. Tina takes pride in helping her client understand how the numbers come together. She believes that the extra time spent with a client illustrating the mathematical nuances helps everyone better understand their business. As a mother of three and avid tennis player, Tina still finds time to enjoy traveling, exercise and the occasional moment of downtime (which is like a unicorn). Sally Rhoades, CPA Tax Manager Sally began her tax career in 1988 with Ernst and Young (never heard of them, are they big?) in Nashville and became a CPA licensed in Tennessee in 1989. For 10 years, she followed her Air Force husband all other the world and was a full-time mother of two and a volunteer at various Air Force tax assistance offices. She has lived in Belgium and Germany and has deep experience with expat and military residency issues. Sally joined Watson CPA Group in early 2014 and became a licensed CPA in Colorado shortly thereafter. In her spare time, she enjoys camping, tailgating at USAFA football games, and spending time with her family. Doug Davidson, CPA Accounting Manager Doug has been a Certified Public Accountant for more than a decade and began his accounting career in Baton Rouge, Louisiana. As a recent transplant to Colorado Springs, he prefers the accounting and payroll worlds over the tax world. Doug brought his own payroll service to plug into the Watson CPA Group which functions as a joint venture for the benefit of our clients. Yes, he is a huge LSU fan. Yes, he is a huge Saints fan. And he also holds the record for having the most non-matching monitors on a single desk. Mayzie Brown, CPA Accounting / Tax Manager Mayzie Brown became a CPA in Colorado in 2011. In 2002, she earned her BS in Accounting from the University of Colorado right here in Colorado Springs. She loves numbers, but her true love is taxes! Mayzie has been a part of the Watson tax team for two years and has recently become a full-time employee in the accounting department – don’t worry, we’re working on a way to clone her so we can still utilize her brain during tax season. Mayzie worked for the IRS for seven years prior to joining the Watson CPA Group. We forgive her for this (no, really!) and her unique perspective has proven invaluable when tackling a tax return. Outside of work Mayzie has a happy, busy life with her husband and their two active boys. She enjoys musicals, concerts, and travel. Catherine Mast Heather Bannister Thuy Squires Jocelyn Nasman Staff Accountant Staff Accountant Staff Accountant Staff Accountant Amanda Rowles Jason Watson Tony Rossi John Stone Biz Development Consultant, TOC Team Attorney, TOC Team Advisor, TOC Team One Call ● One Team ● Working in Concert In early 2015, the Watson CPA Group expanded its depth and quality of services to our clients. We were concerned about our business owners only having access to individual silos of quality advice from tax modeling to small business consultation to retirement planning to estate strategies. Picture a drive through Wisconsin farmlands. Each silo individually doing the right thing, but collectively missing the mark. Therefore, we have partnered with trusted advisors who work shoulder to shoulder who work collaboratively to form a singular financial team under one roof , quite literally. Tax and Small Business Consultants. Financial and Insurance Advisors. Estate Planning and Business Law Attorneys. Mortgage Brokers. For more information on The One Call Team, please visit- www.watsoncpagroup.com/toc Progressive Updates The tax law is continuously changing from the acts of our government, to the decisions by the tax court and federal courts, and through notices and private letter rulings from the IRS. In addition to changes, other topics of interest pop up in various trade journals such as Journal of Accountancy and Kiplinger’s Tax Letter. As we discover other issues concerning LLCs, S Corporations and self-employment taxes, we want to get the word out right away. More importantly, the frequent business consultations we perform and the questions we field provide a steady stream of new ideas that are worthy of being wormed into this book. So here’s to you- the curious small business owner helping others. Currently this book is in the middle of a 2015 Edition makeover. As big chunks get updated, we are pushing out the versions on Amazon and PDFs within our website. However, having purchased this book and expecting it to be complete, you can get the final version of the 2015 Edition at no cost to you. Please write us with your order number from Amazon, Nook, iTunes, etc., and we will mail a copy to you at no charge. We encourage you to visit our website for information on updates- www.watsoncpagroup.com/book Disclaimer The information materials and opinions contained on the Watson CPA Group website and this book are for general information purposes only, are not intended to constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. The Watson CPA Group and Jason Watson make no warranties, representations or undertakings about any of the content of our website and this book (including, without limitation, any as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other website referred to or accessed by hyperlinks through our website and this book. Although we make reasonable efforts to update the information on our site and this book, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date. Shameless Self-Promotion This book originally was a collection of KnowledgeBase articles that were written to help small business owners and to help our own small business through educational marketing. Since you probably paid some money for the privilege of being bombarded with shameless self-promotion, we hope you take our comments with a grain of salt. Our primary focus is to educate you, minimize your tax consequence, maximize your wealth and keep you out of trouble. If you read this, arm yourself with knowledge and then ask pointed questions to your accountant, we are completely happy. We have done our job with this book. Having said that, if you want the Watson CPA Group’s assistance in whatever capacity necessary, from quick second opinions to full-time service, we are also happy to provide that. Want more information? The Epilogue in the back of this book has all kinds. What This Book Is Not Taxpayer’s Comprehensive Guide to LLCs and S Corps seems, well, comprehensive. But, this book is not about how to market your product or service. It certainly is not going to teach you how to do accounting or how to set up your chart of accounts. That stuff is boring, and there are so many other really good resources out there. As an aside, most business owners unnecessarily complicate the crap out of his or her world. For example, chart of accounts. Keep it simple- 10 expense accounts max. You’re not IBM. Furthermore, if you are not tracking accounts receivable or inventory, skip QuickBooks. That software is cumbersome and will consume all your free time. Do you want to work or do chores? MS-Excel, Xero or Waveapps might be your best bet for memorializing your transactions. Do you want to know more along these lines, give us a shout! Finally, this book will not teach you about recordkeeping, although you can visit our KnowledgeBase and get all the recordkeeping information you need- www.watsoncpagroup.com/recordkeeping Introduction How can I avoid self-employment taxes? This simple question was the inspiration for creating an article describing the benefits of an S Corporation.