For Federal and California tax purposes, a C Corporation is a separate tax entity and files it’s own tax return to report its income and losses. Shareholders in a C Corporation don’t report any of the income of the corporation on their personal tax return. C Corporations also pays federal and state taxes on its income at the federal and state tax rates specially for C Corporations.
C Corporations enjoy the greatest variety of tax-favored fringe benefits of all business entities and our experienced accountants can guide you through those advantages. C Corporation employees can receive tax free employer-provided group life insurance up to a certain amount, health insurance coverage, dependent care assistance, education assistance, adoption assistance and more.
At Tax & Financial Services, our accountants are very experienced in handling the complexity of tax rules, continual changes in tax rules, the variety of tax returns that must be filed for income, employment, and excise taxes and the time it takes to address tax responsibilities.
Our accounting firm works with individuals and businesses all over the Bay Area such as Fremont, Newark, Union City, Hayward, San Jose, Santa Clara, Milpitas, Oakland and San Francisco.
Tax Issues – We can help
When you are a C Corporation, you will need to deal with some complicated tax laws that occasionally traps small business owners. Through detailed tax planning, our accountants help small businesses take advantage of the favorable tax laws as well as keep the businesses compliant.
Some of the issues we help our clients navigate are:
- Double Taxation,
- Personal Holding Company Tax,
- Accumulated Earnings Tax,
- Corporate Alternative Minimum Tax,
- Section 351 Transfers
- Section 1244 Stock
- Qualified Small Business Stock (QSBS)
- Leasing Assets to Your Corporation
- Dissolving the Corporation
Tax Planning and Tax Strategy
C Corporations tax laws provide a variety of ways to lower both – business and personal tax burden, but only if you properly plan around the rules, and execute that plan. We work with a lot of local and foreign individuals that are conducting business as a C Corporation in the Bay Area.
Contact us via email or phone to make an appointment today.