Our tax preparation services include:
• Preparation of individual and business tax returns for federal, state and local taxing authorities.
• Electronic filing of tax returns
• Representation with tax authorities, as needed
• Prepare communications in response to taxing authority's notice
• Calculate estimated payments, as needed
• Tax planning
S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income.
To qualify for S corporation status, the corporation must meet the following requirements:
Be a domestic corporation
Have only allowable shareholders
including individuals, certain trust, and estates and
may not include partnerships, corporations or non-resident alien shareholders
Have no more than 100 shareholders
Have one class of stock
Not be an ineligible corporation i.e. certain financial institutions, insurance companies, and domestic international sales corporations.
In order to become an S corporation, the corporation must submit Form 2553 Election by a Small Business Corporation (PDF) signed by all the shareholders.
2011 FICA Tax Rates
Tax Tax Rate Minimum Wage Base Maximum Tax
Employee's share 4.20% $106,800 $4,486
Employer's share 6.20% $106,800 $6,622
Medicare 1.45% No Limit No Limit
FICA tax is a combination of a social security tax and a Medicare tax. The social security tax is assessed on wages up to $106,800; the Medicare tax is assessed on all wages.
Self-employed individuals pay a self-employmnet tax which is the equivalent of FICA tax. For 2011, they will pay a 10.4% OASDI (Old Age, Survivors and Disability Insurance tax) on the first $106,800 of self-emnployment income. A 2.9% Medicare tax is imposed on all net self-employment income.
2011 Corporate Tax Rates
Tax Rate Taxable Income Tax Rate Taxable Income
15% $1-50,000 34% $335,001-10,000,000
25% 50,001 - 75,000 35% $10,000,001- 15,000,000
34% 75,001 - 100,000 38% $15,000,001 - 18,333,333
39% 100,001 - 335,000 35% over 18,333,333