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| Tax Filing Tip |
| Generally, you must have your taxes prepared every year. Even if you do not have the money to pay your taxes, always have your taxes prepared and filed on time to avoid potential penalties and interest related to unfiled tax returns. In addition, if you owe taxes to the IRS (Internal Revenue Service) or the FTB (Franchise Tax Board) you may also be subject to interest and penalties on any unpaid tax liability. |
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| Q: Do I have to file my corporation tax return if my corporation generated no revenue? |
| Yes. You must always have your corporation taxes filed and prepared regardless if your corporation generated revenue or not to avoid unfiled corporation tax return penalties. Don't forget that the interest and penalties keep running on your unpaid tax liability and unfiled tax returns until you pay and file your taxes, so sooner you file and pay your taxes to the IRS and Franchise Tax Board the better! |
| Q: What are some of the Federal and California State tax filing deadlines? |
For calendar year entities, meaning entities with December 31st year end,
the Federal personal (individual) income tax filing deadline is generally the April 15th
the Federal corporation income tax filing deadline is generally the March 15th
The Federal partnership income tax filing deadline is generally the April 15th
Some state tax filing deadlines may vary from the federal tax filing deadlines. However, most of the states follow the federal tax filing deadlines. For example,
the California personal (individual) income tax filing deadline is generally the April 15th
the California corporation income tax filing deadline is generally the March 15th
the California partnership income tax filing deadline is generally the April 15th |
| Q: What information should I provide my tax preparer to prepare my income taxes |
Provide your tax preparer, tax accountant, tax CPA your:
›W-2 forms
›K-1 forms from Partnerships and S Corporations
›1099 forms from self employment, 1099 interest income
›1098 mortgage interest forms
›real estate taxes paid on your personal real estate, rental real estate, business real estate ›college and other tuition (education expenses) paid as well as any student loan interest paid
›charitable contributions made to nonprofit organizations
›business expenses-your business expenses should be organized by category. For example, supplies, equipment, rent, licenses, amounts paid to independent contractors, gifts , etc.
›vehicle expenses-If you used your vehicle for business, provide your total business miles, total commuting miles and all other miles driven during the year. In addition, provide amount paid for tolls, insurance, parking fees, auto lease payments, auto maintenance such as oil changes, tires, repairs, etc. |
| Q: How long is the income tax extension for Corporations, Partnerships and Individual tax returns? |
With the proper application, you may be eligible for a six month extension. This means that you may file your Personal taxes and Partnership taxes by October 15th and Corporation taxes by September 15th. |
| Q: Does a tax extension also extend the due date for paying taxes? |
| No. Generally, any taxes due will need to be paid ontime. April 15th for Individual tax returns and Partnership tax returns and March 15th for Corporation tax returns. |
| Q: What is an income tax refund based on? |
| Income tax refund is based on various factors, but as a general rule, you can expect an income tax refund if your tax liability calculated by your tax accountant is less than the sum of your tax payments and tax credits for the year. |
| Q: How much does your tax preparation fees cost? |
| Since every tax preparation requires different amount of work and time, there is not one standard price set for tax preparation fees. However, our personal tax return preparation fees start at $45 and business tax preparation fees start at $60. |
| Q: What are some relevant tax information links |
For questions regarding federal taxes and IRS related questions you may visit www.irs.gov
For questions regarding California taxes and Franchise Tax Board Questions you may visit www.ftb.ca.gov
For questions regarding sales taxes and Board of Equalization you may visit www.boe.ca.gov
For questions regarding corporations and Secretary of State you may visit www.sos.ca.gov |
| Q: Are nonprofit organizations allowed to make profit? |
Yes. In general, Nonprofit organizations are allowed to make profit. |
| Q: Can the directors of the nonprofit organizations receive salaries? |
| Yes. Generally, some of the directors of a nonprofit organization can receive a salary for the services rendered to the nonprofit organization. |
| Q: Can the directors of nonprofit organizations pay themselves all of profits of the nonprofit organization? |
| No. This is one major difference between a nonprofit organization and for profit organizations. Nonprofit organization directors can generally receive reasonable salaries, but for profit organization directors can pay themselves all of the profits of the corporation in addition to reasonable salaries. This is known as distribution of retained earnings. |
| What are some common web links for information on nonprofit organizations: |
For IRS tax and compliance information on your nonprofit organizations try http://www.irs.gov/charities/article/0,,id=148518,00.html
For California state tax compliance information on your nonprofit organization try the following FTB page referring nonprofit organizations to as exempt organizations
http://www.ftb.ca.gov/individuals/faq/beExempt.shtml |
| Q: If i want to start a new business in California or purchase an existing business in California, can Jerry Avetisyan, CPA help me throughout the process? |
| Yes. Jerry Avetisyan, CPA is an expert Business Consultant who will be able to help you with purchasing an existing business or starting a new business in California. |
| Q: What are the advantages and disadvantages of Incorporating? |
Some of the advantages of forming a Corporation are the following:
›You may get corporate liability protection
›The salaries paid to shareholder may be tax deductible
›The health insurance payments made to shareholders and employees may be tax deductible
›Even if the corporation makes no profits the shareholders may be entitled their guaranteed salaries
›You may sell your corporation, but you can't sell your DBA.
›You may be able to build corporate credit
The disadvantages of forming a Corporation are the following:
›You are generally required to pay the state government, such as California the minimum $800 tax even if your corporation makes no profits. Generally, this $800 fee does not apply for the first year of incorporation.
›You must file a corporation income tax return even if your corporation made no profits.
›You cannot commingle corporation income with personal income.
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| Q: What are some of the states that I may be able to incorporate in? |
You may be able to incorporate in some or all of the states listed below depending on various factors:
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois |
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana |
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
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Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin |
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*Disclaimer: The information provided on this webpage should not be relied upon without further research. Call Jerry Avetisyan, CPA for a free consultation.
Jerry Avetisyan, CPA. Certified Public Accountant and Business Consultant located in Glendale, CA. Certified Public Accountants, CPAs. Jerry Avetisyan, CPA offers tax preparation services, business startups, incorporation services, nonprofit organizations, audit services, payroll services, sales taxes, dba fictitious business name filing, controller business management services, late s corporation election help, forgot to file for s corporation, accounting services in Glendale, CA, minutes from Burbank, La Crescenta, La Canada, North Hollywood, Eagle Rock, Silver Lake, Highland Park, Van Nuys, Pasadena, Rosemead, Hollywood, Monrovia, Los Angeles LA California and other nearby cities are Hollywood, Hollywood Hills, Santa Monica, Los Angeles, CA, Beverly Hills, Brentwood, West Hollywood, Los Angeles, LA, Glendale, Burbank, Agoura Hills, Diamond Bar, California, Lancaster, Rolling Hills Estates, Alhambra, Downey, Lawndale, Rosemead, Arcadia, Duarte, Lomita, San Dimas, Artesia, El Monte, Long Beach, San Fernando, Avalon, El Segundo, Los Angeles, San Gabriel, Azusa, Gardena, Lynwood, San Marino, Baldwin Park, Palos Verdes, Pacific Palisades, Glendale, Malibu, Santa Clarita, Bell, Glendora, Manhattan Beach, Santa Fe Springs, Bell Gardens, Hawaiian Gardens, Maywood, Santa Monica, Bellflower, Hawthorne, Monrovia, Sierra Madre, Beverly Hills, LA, CA, Hermosa Beach, Montebello, Signal Hill, Bradbury, Hidden Hills, Monterey Park, Granada, Tujunga, Sun Valley, Sunland, Topanga, Chatsworth, Northridge, Encino, Granada Hills, Woodland Hills, Van Nuys, North Hollywood, South El Monte, Huntington Park, Norwalk, South Gate, Calabasas, City of Industry, Palmdale, South Pasadena, Carson, Inglewood, Palos Verdes, Estates, Temple City, Cerritos, Irwindale, Paramount, Torrance, Claremont, La Canada, Flintridge, Pasadena, Vernon, City of Commerce, La Habra Heights, Pico Rivera, Walnut, Compton, La Mirada, Pomona, West Covina, Covina, La Puente, Rancho Palos Verdes, West Hollywood, Cudahy, La Verne, Redondo Beach, Westlake Village, Culver City, Lakewood, Rolling Hills, Whittier.
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