Tax Strategies are an important reason to consider Incorporation. There can be substantial tax savings for properly managed corporations. It is very important to understand the application of these strategies. The IRS has taken the position that tax avoidance is not a valid reason for Incorporating. The tax code is full of such contradictory logic. It is perfectly safe, and valid to utilize any tax advantages you may qualify for by incorporating. This is a very important reason the maintenance of your corporation books, minutes, and resolutions are so very important. Small corporations with a pre-tax profit of $50,000 to $75,000 may see tax savings of $7500.00 to $20,000.00 or more over the same profit reported on a personal tax return as a sole proprietorship.I

The C Corporation is the most common form of Incorporation. Again, state civil law regulates what kind of corporation you can form. There are special laws regulating the formation of Bank corporations, law corporations, and other professional service firms. This is an ideal form of corporation for building trade contractors, some service businesses, eating establishments; generally active business concerns are well served with this structure. A qualified C Corporation is a separate taxable entity and has the potential for double taxation. There are also limits to how much earnings and profits can be retained by the corporation, so this form of business, while it also offers outstanding tax advantages, must be managed more carefully in regard to tax strategies.

The S Corporation is a pass through entity. A C Corporation can make an election to become an S Corporation by filing form 2555 within 75 days of formation or by requesting a change of status with the IRS using this form. If the election is made after the initial time limit there is a delay before the S status takes affect. A pass through entity is not taxable. Taxes are passed along to the shareholders on schedule K-1 much like a partnership. S Corporations have some advantages, especially during startup years.

The Limited Liability Company has become popular in recent years as a simpler form of business. An LLC is a pass through entity as well and is ideal for holding real estate and other investment property.

Corporations, Privacy, and Asset Protection are a very integral part of doing business in America today. You have the option, as a stockholder, of keeping your business (and it's liabilities) separate from your personal life and finances. You can keep the ownership of your business off the public record, and sleep a little easier knowing that all of your hard earned money and property is not exposed to an unexpected lawsuit.

Tax Strategies for C Corporations are varied and complex. A C-Corporation is taxed at a lower rate (15%) for the first fifty thousand dollars of profit. The rate is progressive and increases incrementally after that. You can also develop great legitimate tax deductions in your corporation if your books and resolutions support the business use, in writing, of the items you can deduct. This strategy involves designing your business plan, and organizing your books and records not only to meet the letter of the tax code, but also to develop an intent and direction that fits the intentions of congress and the view of the IRS. Medallion services was designed to insure that you have covered all the basis and achieve the benefits of reducing your taxes, protecting your assets, and allowing you to focus on making money. We have had decades of experience developing these strategies and created medallion to offer businesses that are ordinarily not privy to the secrets of the big corporations the same level of work and tax advantages that used to belong only to the richest Americans. There are two things you need to consider when assessing the value of our services...

First, are these strategies legitimate? We can support from the tax code and from our application of experience every consideration we advise you to use in your business, and we are willing to put our name on your tax return.

Secondly, is it worth it? When considering all the reasons for incorporating you should count the cost of doing it right. We believe the real dollar savings in taxes alone will more than pay for the service, but you should also consider the value of piece of mind knowing that all of your business needs are being taken care of at one place by people who know your business.

Tax Strategies for S Corporations are not as flexible as C corporations, but there are still many great tax advantages. There are also times especially in the first years if the company is operating at a loss when an S corporation makes sense. Legitimately characterizing expenses as business deductions with the proper use of your minutes and resolutions is one key to obtaining some of these great tax advantages. Another strategy that is commonly used in both C corporations and S corporations is the development of leases and forms of payments to the participants other than as earned income.

OK…we just said a lot here. The bottom line is, we realize that if it weren't for taxes, many businesses wouldn't do any bookkeeping at all, and that would be a big mistake! Why? We have learned time and again, that information provided at the right time and in a way you can understand can mean the difference between profit and loss, retirement or continued work, or life or death for your business.

"We work late so you don't have to!"