What is the Difference Between C and S?

Well that seems obvious, doesn’t it?  When it comes to forming a corporation that letter can make a world of difference.  Setting up a corporation provides limited personal liability for its owners.  Let’s start with a basic premise.  All corporations dawn as C Corps.  A C Corporation may be converted to an S Corporation by filing IRS Form 2553.

To obtain S Corp status for a certain year, Form 2553 must be filed no later than the 15th day of the third month of the fiscal year.  Of course, it can also be filed during the previous tax year.  There is a big difference in how a C Corp and an S Corp are taxed.  The main reason for choosing an S Corp is to save on taxes.

Is a C Corp right for your burgeoning business?  There are questions that should be asked of a professional CPA.  In Las Vegas, that man is Michael Mathews one of Las Vegas’ leading corporation specialists.  The name says it all.  You can find Michael at www.accountant-lasvegas.com.  Call (702) 240-5237 for a meeting at his 2620 Regatta Drive Suite 102 office.

Paying Corporate Taxes Late is No Joke.

The IRS is not known for its sense of humor.  Quite the opposite, they always demand their share whether it is now or later.  This is especially true with corporate taxes.  If you own a business the tax deadlines may be quite different than your personal taxes and you probably need a professional CPA to handle that for you.

Here are a few facts that you need to know –

1.  A failure-to-file penalty may apply if you did not file by the tax filing deadline.

2.  The failure-to-file penalty is generally more than the failure-to-pay penalty.

3.  That penalty starts accruing the day after the tax filing due date.

4.  If you requested an extension in a timely manner, you may not face a penalty.

All of these facts, and much more are a part and parcel of the daily routine of Michael Mathews.  He is a Las Vegas CPA and accountant who knows the ins and outs of what the IRS requests and expects from business owners in the Valley.  Make an appointment at his 2620 Regatta Dr. Suite 102 office by calling (702) 240-5237.