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: 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…
“He was able to turn out thousands of paintings over his lifetime while his contemporaries were lucky to turn out a hundred” – Mike Michalowicz discussing Sir Peter Lely A…