NEVADA REGISTRATIONS, INC

Conducting business under corporate, LLC or limited partnership IRS tax codes offers the Owners and Principals tax deductions not available to individuals. The tax advantages derive from the Owners and Principals ability to deduct expense items before taxation rather than after taxation. Example, as an individual your medical and dental expenses are borne by you after taxable earnings and other income. AS A PRINCIPAL IN A COMPANY ALL THESE EXPENSES MAY BE BORNE BY THE COMPANY AND IRS TAX EXPENSED, with no taxable income to the Principals.

One might think combining the above deductions with the further advantages of a Sub Chapter”S” entity to be a tax euphoria.

However, beware of the pit falls of the Sub “S” corporation and LLC tax filing classification. Sub-”S” has the advantage of eliminating the so called DOUBLE TAXATION for corporations and LLC’s, instead you lose many of the tax benefits and deductions allowed under the current “C” corporation’s IRS tax codes. The IRS tax codes governing Sub “S” require all principals participating in company activities become BECOME A COMPANY EMPLOYEE. This means with holdings for SOCIAL SECURITY, and where applicable, with holdings for unemployment, workman’s compensation and any other deductions as may be applicable. Employee salaries must be commensurate with comparable open market positions.

Recognize, as the Sub-”S”, one half (1/2) of the SOCIAL SECURITY with holding is from the employee’s personal funds and not an IRS corporate or Individual tax deduction. Further, company expenses for employee medical, dental, vehicle, insurance, retirement, travel, entertainment, etc etc. may be IRS declared as employee taxable income, in whole or in part.

NEVADA REGISTRATIONS strongly recommends all “start up companies” consult a competent tax accountant in establishing generally accepted bookkeeping and accounting procedures.