Tax preparation and CPA advisory questions

As a general benchmark, once an active service or operating LLC consistently generates $80,000 to $100,000+ in net annual profit after expenses, an S-Corp election often produces meaningful payroll and self-employment tax savings, even after formal officer payroll, state franchise fees and a separate Form 1120-S return. S-Corps can affect the Qualified Business Income (QBI) deduction, so the studio always runs an exact dollar-for-dollar simulation before electing.

Certified Public Accountants (CPAs) are state-licensed accounting and tax professionals authorised to prepare tax returns, advise on complex accounting structures and issue formal compiled or reviewed financial statements. Enrolled Agents (EAs) are federally licensed tax specialists credentialed directly by the U.S. Treasury. Both CPAs and EAs hold unlimited representation rights before the IRS, unlike seasonal uncredentialed preparers.

The studio works with your internal bookkeeper or bookkeeping firm rather than replacing them. At year-end, and ahead of Q4 tax projections, it reviews your QuickBooks or Xero ledger directly through accountant access, records the necessary year-end tax and depreciation journal entries and coordinates so nothing is duplicated.

Not always. Under IRS Revenue Procedure 2013-30, an existing LLC with reasonable cause may often qualify for late S-Corporation election relief effective back to 1 January, provided officer compensation and payroll are addressed before year-end. Schedule a consultation before December so eligibility can be verified.

No; that is one of the oldest myths in tax preparation. Millions of businesses and families file routine Forms 7004 and 4868 every spring, especially when waiting on corrected brokerage 1099s or partnership K-1s. A clean, thoroughly reviewed return filed in summer is far safer than a rushed, incomplete April return that needs amending later. An extension extends the time to file, not the 15 April deadline to pay tax owed.

Don’t panic, and don’t immediately mail a cheque because a computer-generated notice shows a balance due. Check the response deadline printed in the upper-right corner (typically 30 days) and upload all pages of the notice to the secure consultation link. Many automated notices stem from missing brokerage cost-basis lines or rollover codes that can be resolved cleanly in writing.

Two common traps apply. Employers typically withhold federal supplemental wages at a flat 22% rate at vesting, which falls short if your household is in the 32% or 35% bracket. Brokerages also frequently report a $0 cost basis on Form 1099-B for vested shares unless it is adjusted using the supplemental lot statement; otherwise the entire sale proceeds are taxed a second time.

Share a PDF copy of your most recent filed federal and state returns (personal and business, if applicable) with a quick summary of anything new this year, such as a new entity, home purchase, rental property, stock sale or state move. That allows an exact written fee quote during the introductory consultation.