Category Archives: Services

Incorporate your business

Incorporate your business and protect your assets!

CORPORATE OPTIONS

Corporation vs. Limited Liability Company

Corporations

√       Pay tax on profits in New York and 15% to 34% taxes on profits to the IRS

√        Have less paperwork in terms of Tax Returns that need to be filed

√       Foreigners do not have to pay taxes under the corporation unless the corporation declares dividends

√        Owners may act as Consultants to the Corporation under a written Consultant’s agreement completing all consulting work in their home country and billing the corporation in the United States for this service.  Utilizing this strategy, it may be possible to eliminate any profits and all taxes otherwise payable.

 

Limited Liability Companies

√      Are exempt from Federal Corporate Tax, the LLC pays no tax.

√      Profits, whether distributed or not, are taxed and the Owners of the LLC must pay tax at the personal level at their individual tax rate.

√       Have to file both a Partnership Tax Return for the LLC and Tax Returns for each member.

√        While partnership tax rules are generally more flexible, the LLC should be owned by more than one person or entity to ensure classification as a Partnership for tax purposes.

√       Owners may act as Consultants to the LLC under a written Consultant’s agreement completing all consulting work within their home country and billing the LLC in the United States for this service.  Utilizing this strategy, it may be possible to eliminate any profits and all taxes otherwise payable.

Both types of companies have the same legal protection in terms of liability of the owners.  Therefore, which one you choose depends on your business activity and projected profits.  If the company is going to have little activity in the United States and fairly small amounts of money will be made, you may form a regular corporation which has a simpler record keeping process.   If the company grows and earns large sums of money, you may always register an LLC in the future. If you expect to have large amounts of profit right away, you will generally pay fewer taxes with the LLC, although more paperwork will have to be prepared for the IRS.

itin card

Applying for an IRS ITIN is as easy as 1,2,3

With immigration reform in the works in Congress, there are talks about immigrants paying taxes.  Your ITIN is the way to get started if you have not already done so.

What is an ITIN?

An ITIN or Individual Taxpayer Identification Number, is a number given to persons who need to file taxes, but are not eligible for a Social Security Number.

Who can apply?

An ITIN is for certain non-residents, resident aliens, their spouses, and their dependents. If you do not have a Social Security Number, YOU MUST HAVE AN ITIN TO FILE AN INCOME TAX RETURN. You can apply for yourself, your spouse and dependents in the U.S. and also for those dependents living in Mexico and Canada.

Sandy Relief: Claim your losses

Affected by Super Storm Sandy?

Don’t forget to claim your losses!

Em’s Accounting Service can help with that!

Already filed? Forgot to claim your losses?

No problem. We can help with that too!

Maximize your refund!

Contact us for more details