General business related topics including strategy, marketing and of course, finance. Fraim, Cawley & Company, CPAs provides business advisory services along with a full array of accountant services to the Roanoke area.
Q: Does the $10 million QSBS exclusion make a C-Corp the best structure for most small-business owners? A: Rarely. QSBS can erase capital-gains tax, but only when you: (1) run…
Q: Can the 10.5% GILTI regime really beat an S-Corp for a small-business owner? A: Only in very specific circumstances. It can win if you’re a high-earning US expat who…
Q: Can I avoid self-employment tax on partnership profits by having an S-Corp own my LLC interest? A: Yes – if structured correctly. The S-Corp pays you a reasonable salary…
Q: Can I avoid my home-state income tax by registering my business in a no-tax state like Wyoming or Nevada? A: No. Your resident state taxes income where you live…
Q: How do I determine a “reasonable salary” for my S-Corp? A: Start with what you’d pay an unrelated employee to do your job, then adjust for profit, duties, time…
Q: Does moving income through a licensing agreement between my S-Corp and a C-Corp safely reduce tax? A: Only if it’s real. The deal must serve a bona-fide business purpose,…
Q: Does pairing a C-Corp with an S-Corp actually lower your overall tax bill? A: Only in narrow cases. Splitting income lets you defer the second layer of C-Corp tax,…
Q: Does the 21% corporate tax rate make a C-Corp cheaper than an S-Corp? A: No. After double taxation and lost pass-through benefits, most owners pay more overall with a…
Q: What tax deductions do most small businesses miss? A: Nearly every “ordinary & necessary” expense – advertising, software, contract labor, insurance, rent, supplies – can be deducted. The main…
“How much you want to make a bet I can throw a football over them mountains? Yeah. If coach would've put me in fourth quarter...we'd have been state champions, no…