I’m a corporation and cash basis. How do I wind up yearly with a profit and have to pay federal corporation taxes as well as state? Last year I had to borrow 40k to fund pension plan to create a 40k deduction to offset 42k profit and avoid a 35% tax which would be about 15k.
Any suggestions going forward?
Should I go to self employment and can corporate entity which today is not a must?
What I find crazy is how you can NOT know how you end up with profit and NOT know how you can plan for it.
Unless you double as a CPA and can handle all the nuances of proper planning, why not seek out advice to either explain it to you or get help planning for it.
You must be a C-Corp since you have a corporate tax liability to worry about and there are still plenty of C-Corps out there. There are several options for you. Still, maybe the C-Corp is your best choice.
So without knowing you and your specific situation, I don’t see how I can give you any advice on how to move forward. You need very specific advice based upon your own situation.
This post first appeared on Dentaltown.