Proudly Serving Madison since 1969

For Immediate Help... Call now!

Consulting Services Tax & Accounting

Experienced Tax Problem Solvers • Specializing in Business & Individual Tax Solutions

Business Consulting

Business Consulting

We can help you navigate the complex legal requirements of setting up your own business entity, including registering the business with the state Department of Financial Institutions, setting up corporate record books, organizing minutes and bylaws, and designing LLC operating agreements.

We are also happy to advise you on setting up your business, as well as an accounting systems and payroll in Madison, WI, that will work for your business both now and in the future. We can provide QuickBooks support and training and tax planning strategies.

Corporations, Partnerships and LLC’s

We offer tax return preparation for partnerships, corporation and LLC’s. This would include forms 990, 1120, 1120S, 1065 and Schedule C which is part of your personal tax return.

How do I start a new business?

We help you set up a business entity which includes creating an Employer Identification Number, registering the business with the WI Department of Financial Institutions, and creating LLC operating agreements or corporate record books (organizational minutes & bylaws) for the business entity.

What type of entity should I set up?

We can help you determine which type of business entity will best suit your particular needs. There are advantages and disadvantages to each type of entity. The following table is an overview of some of the issues to consider when setting up a new business.

BUSINESS ENTITY

THE ISSUE

Sole Proprietor

Partnership

S
Corporation

C
Corporation

LLC

Liability Protection

No

No; All partners are jointly liable for actions of other partners

Yes

Yes

Yes

Number of Owners allowed

1

At least 2, no top limit

A maximum of 75

No limit

No maximum; 1 member LLC is allowed except in MD and Wash. DC

How is income taxed?

Owners pay tax on personal return.

Profits/losses flow through to partners; taxes paid on personal returns

Profits/losses flow through to shareholders; taxes paid on personal returns

Corporation pays tax on profits; owners pay tax when cash or property is distributed

Profits/losses flow through to partners; taxes paid on personal returns

Deduct losses on personal returns?

Yes

Yes

Yes

No

Yes

Avoid payroll paperwork?

Yes

Yes

No

No

Yes

Special allocations of income or expenses among owners?

Not applicable

Yes

No

No

Yes

Is a written agreement advisable when starting?

Not necessary

Yes

Yes

Yes

Yes

Some of the advantages for each business entity:

Sole Proprietor: Easy to set up, easy to run, easy to understand. This is a good choice for first-time entrepreneurs. You can deduct a portion of your home used as an office to operate your business. It is the easiest and quickest to get out of.

Partnership: This is a good way to participate in a venture with other individuals and not have to deal with payroll issues. The responsibilities can be divided between the different partners and the income and loss percentages can vary from partner to partner. The partners have the flexibility to set up agreements with many variables from partner to partner.

S Corporation: Social Security and Medicare taxes are not paid on dividends and or profits from the corporation to the shareholders. It is desirable from the IRS perspective that the shareholders pay themselves a wage as an employee of the S Corporation.

C Corporation: Health insurance is 100% deductible for employees including shareholders. You have the potential to provide fully deductible medical reimbursements and fringe benefit plans for all employees and shareholders. Net profits of the C Corp up to $50,000 annually are taxed at only 15%.

LLC: Owners get the limited liability features of a corporation combined with the income splitting flexibility of a partnership. One member LLC’s can report their income on Schedule C of their personal tax returns.

Some of the disadvantages:

Sole Proprietor: Unlimited personal liability. Self employment tax of 15.3% is due on net income up to $97,500. This amount goes toward your personal social security.

Partnership: Liability for the financial actions of all your partners in the partnership. Ordinary income from the partnership is subject to the maximum self-employment tax. Tracking of the partners’ capital account balances can be complicated.

S Corporation: You cannot fully deduct your own health insurance or benefit plan costs- only those of employees. You cannot take a home office as a shareholder. Any home office deduction would be taken as an employee business expense on the personal return and limited by income and 2% of AGI.

C Corporation: Any losses from the C Corp are carried over within the C Corp and not deductible on your personal tax returns.

LLC: Owners profits are subject to Self-employment tax at the rate of 15.3% on net income up to $97,500, and at 2.9% for incomes over that amount.

If you have questions or comments about this topic and how it relates to your situation, contact us NOW.

Call today to learn more about how your organization can benefit by partnering with Consulting Services for all of your tax, accounting and financial planning needs.

[contact-form-7 id="79" title="Page Contact Form"]

Areas of Expertise

Non-filer & Delinquent filers

For more Information

Click Here

Non-filer & Delinquent filers

At Consulting Services Tax & Accounting, we know that sometimes life can be complicated, and that can make doing your taxes even more difficult. Sometimes, things can just get away from you, and before you know it, one or more years have gone by. That's why we want to work with you, to make it easier to get caught up and current with your tax filing obligations.

Multistate filers

For more Information

Click Here

Multi-State Filing

Sometimes in life you've got to move around. Your work life can take you to many different places, whether it's a short-term assignment, or a long-term move, this may mean that you will need to file a tax return for multiple states. Many smaller tax preparation firms lack either the expertise or the software to handle multi-state filings. With Consulting Services Tax & Accounting, you can count on us to get all of your tax problems under control, no matter what state filings may be involved.

Small Business

For more Information

Click Here

Home-based Small Business Specialist

If you own a small business, you have enough on your mind just trying to handle your day-to-day affairs and help your business grow. Tax time often adds an even greater burden to the small business owner because the rules for deductibility, depreciation, and how to determine your taxable income can be confusing and time consuming. We want to make tax time easier for you, so you can get back to focusing of the running your business.

Corporate and LLC filing

For more Information

Click Here

Corporate & LLC Guidance

Whether you've owned a small business for a while, or you want to start your new business with a plan for the future, the staff at Consulting Services Tax & Accounting is here to help. We can advise you on the best route to take whether it is the formation of an LLC, Partnership, S-Corp, or a C-Corp, and what the advantages and disadvantages are for each type of entity, so that you'll be prepared to make the best possible choice for your businesses future.

Why Choose Us?

Full service Full Service

As a full service tax preparation firm, not only do we offer professional tax preparation we also offer in house accounting and payroll services. Call us today and we will be happy to set up an appointment for a free 30 minute consultation before we begin working together.

Trust us Year Round Service

Consulting Services Tax & Accounting is available and has regular office hours Monday thru Friday year-round to assist you with any and all tax, accounting and payroll issues that may arise.

Piece of mind Peace of Mind

You can count on Consulting Services Tax & Accounting to provide you with high-quality services and expert advice that will put all of you tax time worries to rest.

Custom care We Are There for You

If you have a unique or difficult tax situation, we are always here to help you. We have seen many different tax scenarios in our 45+ years of service to the Madison area.

Tax News

Marcum Leads Top Firms in Q4 Audit Clients

Top 100 Firm Marcum took the top spot among large audit firms in bringing in new Securities and Exchange Commission audit clients in the fourth quarter of 2015, with 11 new engagements and a net gain of six.

Read More

Google's Tax Deal with U.K. May Be Next in Line for EU Probe

European Union competition chief Margrethe Vestager said Thursday morning she's ready to investigate Google parent Alphabet Inc.'s 130 million-pound ($185.5 million) tax deal with the U.K. if there are complaints. It didn't take long for the first to surface.

Read More

Wyly Lawyer Tells Judge Aggressive Tax Planning Not Illegal

Samuel Wyly's lawyer, fighting a $2.2 billion claim by the Internal Revenue Service, told a skeptical judge that his client's tax planning was "aggressive but not illegal

Read More

EU Sets Sights on Forcing Firms to Pay Nations Tax Where Due

Companies shouldn't be able to get away with paying very low taxes--or none at all--in countries where they earn profits, EU Economic Affairs and Tax Commissioner Pierre Moscovici said as he introduced a package of proposals designed to curb tax evasion.

Read More

© 2016 Consulting Services Tax & Accounting All Rights Reserved