by Joan Buchman Miller | May 5, 2025 | C Corporation, S Corporation
Determining “reasonable compensation” is a critical issue for owners of C corporations and S corporations. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to...
by Joan Buchman Miller | Dec 26, 2024 | Accounting, C Corporation, tax planning
When deciding on the best structure for your business, one option to consider is a C corporation. This entity offers several advantages and disadvantages that may significantly affect your business operations and financial health. Here’s a detailed look at the pros...
by Joan Buchman Miller | May 14, 2024 | Accounting, C Corporation, tax planning
Let’s say you plan to use a C corporation to operate a newly acquired business or you have an existing C corporation that needs more capital. You should know that the federal tax code treats corporate debt more favorably than corporate equity. So for shareholders of...
by Joan Buchman Miller | Jul 27, 2023 | Accounting, C Corporation, S Corporation, tax planning
If you play a major role in a closely held corporation, you may sometimes spend money on corporate expenses personally. These costs may end up being nondeductible both by an officer and the corporation unless the correct steps are taken. This issue is more likely to...
by Joan Buchman Miller | Apr 24, 2023 | Accounting, C Corporation, tax planning
If you’re the owner of an incorporated business, you know there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason: A corporation can deduct the salaries and bonuses that it pays executives, but not dividend...
by Joan Buchman Miller | Dec 12, 2022 | Accounting, C Corporation
If you’re launching a new business venture, you’re probably wondering which form of business is most suitable. Here is a summary of the major advantages and disadvantages of doing business as a C corporation. A C corporation allows the business to be treated and taxed...
