Rimon
 Save as PDF
RSS Feed Subscribe

Entries tagged “tax law and international tax”

An LLC Can be Treated as an S-Corporation for Tax Purposes

insights An LLC Can be Treated as an S-Corporation for Tax Purposes Michael Moradzadeh · February 2, 2010

An LLC can be treated as an S-Corporation for tax purposes if it makes an S-Corporation election as long as the entity meets the IRS criteria to be taxed as an S-Corp, files an S-Corp election and gets approved by the IRS to be taxed as an S-Corporation. Without an S-Corporation election, single member LLCs…

Continue Reading…

The Criteria for Being Classified as an S-Corporation

insights The Criteria for Being Classified as an S-Corporation Michael Moradzadeh · February 1, 2010

In order to be classified as an S-Corporation, a company must: be domestic, have no more than 100 shareholders, have one class of stock, all shareholders must be individuals, decedents’ estates, bankruptcy estates, trusts or tax-exempt charitable organizations, or wholly owned by another S corporation, and all shareholders must be residents of the United States…

Continue Reading…

The tax benefits of making an S-Corporation Election?

insights The tax benefits of making an S-Corporation Election? Michael Moradzadeh · January 31, 2010

Many small business owners incorporate their businesses not only for legal protection, but also to reduce owners’ payroll taxes through S-Corp tax election with the IRS. One advantage of an S-Corp is that it gives business owners the ability to reduce their self-employment taxes. Any small business owner who has not made an S-Corp election…

Continue Reading…

UK Reporting of Undiscosed Foreign Accounts

insights UK Reporting of Undiscosed Foreign Accounts Yaacov P. Silberman · October 28, 2009

On September 1, 2009, the Government of the United Kingdom implemented the New Offshore Disclosure Opportunity (“NDO”). The NDO allows those individuals with unpaid UK taxes relating to previously undisclosed income and/or capital gains linked to offshore accounts and/or assets to settle related tax liabilities at a favorable 10% penalty rate.  Ordinarily, penalties are charged…

Continue Reading…

Important Tax Issues for Companies with U.S. and Israeli Operations

insights September 17, 2009

If you are a company with operations in both the United States and Israel, you should be aware of several very important U.S. and Israeli Tax issues when you engage in cross border operations. I have set forth below several of the main issues. This list is not exhaustive and only reflects briefly the main…

Continue Reading…

U.S. Reporting of Undisclosed Foreign Accounts

insights September 1, 2009

The IRS has now implemented a special approved penalty framework for resolving the civil side of offshore voluntary disclosures and this approved penalty framework is effective till September 23, 2009 at which time the IRS intends to re-evaluate the approved penalty framework. Under the approved penalty framework, the taxpayer has to file correct or amended…

Continue Reading…

What is pass-through/flow-through taxation?

insights What is pass-through/flow-through taxation? Michael Moradzadeh · July 18, 2009

In a pass-through (or flow-through) entity, the entity’s income and expenses “pass through” the entity and are treated as the income and expenses of its owners. LLCs and S-Corporations are pass-through entities. This differs from a C-Corpoartion (which is the default form of corporation) which is taxed a corporate income tax at the end of…

Continue Reading…

Should my business be a Corporation or an LLC?

insights Should my business be a Corporation or an LLC? Michael Moradzadeh · July 17, 2009

If your business only has a few investors and you do not anticipate receiving outside financing in the near future, an LLC is probably best for you because of its flexibility, simplicity, and pass-through taxation (see blog entry on pass-through taxation). However, if you want a board of directors that is distinct from the officers and/or…

Continue Reading…

Why form a limited liability entity (Corporation or LLC)?

insights Why form a limited liability entity (Corporation or LLC)? Michael Moradzadeh · July 15, 2009

A limited liability entity (a corporation or an LLC) provides both financial and liability benefits. The financial benefits include the ability to deduct more business expenses from annual revenue when calculating taxable income than would be possible without an entity. Forming a limited liability entity also helps protect your personal assets in the event of…

Continue Reading…