Jun 01

Potential loss of tax protection

There is a current proposal by the IRS to increase the amount of self-employment taxes paid by small businesses. The proposal goes along the following lines:

FICA taxes (Social Security and Medicare taxes) are imposed on wages up to about $120,000. These are paid one-half by an employer and one-half withheld from an employee’s wages. If you are self-employed, you pay both halves. If you are a general partner of an active partnership and there is a distribution, then you are allocated this as self-employment taxable. A simple way around having to pay self-employment on all earnings was to organize as an S corporation and set your wages at a certain level.

These nutrients have price for viagra 100mg capability to bring erectile functions back on the track. Some cialis viagra generico of them face physical exhaustion, while some face mentally exhausted. The same goes for vitamin E which acts as viagra online for sale an antioxidant. These career ‘derailers’, as they are named, are in effect instilled character traits which impact upon special info order levitra online the person’s behaviour and actions. However, the IRS has proposed that all income from a professional service business may be subject to the self-employment taxes in the same manner, regardless of the form of the business (partnership or S corporation). If the IRS is successful in closing this “loophole” then it has been estimated to raise $75 Billion in taxes over the next 10 years.

Who will this affect? Just the local small business that is organized as an S corporation. If you have a small business, then you should schedule a time to meet with your local estate or business planner and your tax preparer to learn how this proposed regulation can affect you. If you have not organized to maximize your liability protection, then I encourage you to do so by scheduling an appointment with me as soon as possible. It is best to meet with a person that is aware of all aspects of the business (legal, tax and estate) when you are planning around your livelihood.