We Prepare Tax Returns!

We prepare most type of tax returns:

Individual. 

S Corporation.

C Corporation.

Partnership.

Payroll.

Amended.

Client Video Testimonials

Click here to watch some of our clients in their video testimonials!

Client Testimonials

I became totally and permanently disabled after a working for 44 years. I returned to college late in life (while working full-time) to fulfill my dream of becoming an RN and at that time found it necessary to secure student loans. Three years after being declared totally and permanently disabled my student loans were discharged. In January 2013 we received a 1099-C form declaring said student loans that were discharged however that amount could be considered as income for 2012. This was a large amount of money and we live on two pensions and social security income.

I started looking on the internet for information regarding 1099-C and felt that this was something that we could not handle alone. I made phone calls locally to a very reputable tax group in a city near us and they said it would cost $500 for an appointment and that they really prefer to do corporate taxes and they referred me to a local person who had worked for them at one time, we called and explained the situation and an appointment was made and then the comment was made that "I will have to do some research on this" and flags immediately went up and we called back and cancelled that appointment. I had been researching the IRSwebsite and every place else I could think of and I was not comfortable doing our own taxes this year. We called another local tax preparer that we had used in the past and made an appointment, however prior to the appointment, while still seeking information regarding our situation,

I came across a website for Gary l. Bode, MSA, CPA, PC in Wilmington, NC. I called Mr. Bodeand explained our situation and asked if he could help. He spoke very knowledgeably regarding the situation and stated that yes; he felt he could help us. As Mr. Bode was in North Carolina and we were in New York I scanned all of our documents including back-up documents for all of our claims and forwarded all to him. Mr. Bode kept in touch with us via email; we have spoken on the telephone several times and have become very comfortable with his knowledge and professionalism. Also, as I am a true "worrier" I have continued looking into information regarding our tax situation and I came upon another web page for Mr. Bode that included testimonials which spoke of his experience with this type of tax situation as it became prevalent during the recession. This reinforced in our minds that we had made the right decision in hiring this person as our tax preparer.

I share all of this as our taxes are now ready to be filed (we do owe tax for 2012 but not the astronomical figure we thought we were facing), and we are confident that they have been prepared with the utmost care by a gentleman who has an excellent working knowledge of the situation we faced and the tax laws that were applicable to said situation.

 

Bill and Carol

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Even though Gary enjoys helping colleagues, we no longer provide free consults to other tax preparers. He's happy to consult on an hourly billing basis if our schedule allows.

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Limited Liability Company CPA discusses IRS Taxation Options | LLC Tax

Limited Liability Company CPA discusses LLC tax options

Gary Bode, CPA: There’s a reason why LLCs are so popular. For a free initial phone consult, please call 399-2705.

Limited Liability Company CPAs see the LLC touted as the business entity of choice. But the choice of business for entity depends on multiple factors. Note that LLC is a unique type of business organization allowed under state law. First used as holding companies for real estate, they’ve become popular for the limited liability they can offer each Member. If the LLC is sued, each Member is only liable for what they’ve put into the LLC. But a good lawyer can still attach to the Member’s personal assets under some conditions which aren’t addressed here. I’ll deal with IRS taxation issues which must be considered with any business startup.

“The IRS allows a Limited Liability Company to choose how it wants to be taxed.”
– Gary Bode, LLC CPA

So, how can my Limited Liability Company be taxed?

Single Member Limited Liability Company – SMLLC

This is the default IRS classification for a LLC with only one Member. However it can be taxed as a C Corporation or S Corporation as well. Your SMLLC is a sole proprietorship, but the LLC adds a layer of legal protection should the company be sued. Your Limited Liability Company’s CPA files Schedule C, Profit or Loss for Business, along with your personal Form 1040. You pay income and self-employment taxes on the profit from Schedule C. See the S Corporation section below for a nice loophole around this self-employment tax.

Partnership LLCs

Partnership is the default IRS classification for LLCs with two or more members. This is a very flexible entity. Profits, losses and equity can be re-allocated at will. This makes attracting investors and accommodating the changing needs of current Members easier. The Limited Liability Company’s CPA files Form 1065, U.S. Return of Partnership Income. The LLC incurs no tax per se. But profits, losses and equity flow into each Member’s Schedule K-1. And that information then flows into each Member’s Form 1040. Partners can’t be paid as employees, so profits and distributions are subject to self-employment tax.

C Corporation

Your Limited Liability Company’s CPA files IRS tax Form 8832, Entity Classification Election, to request being taxed as a C Corporation. This action makes sense in two cases 1) as the initial step to becoming an S Corporation and 2) if the LLC might go public in the future. C Corporations are double taxed.

S Corporation

Here your LLC’s CPA files Form 2553, Election by a Small Business Corporation, after approval of Form 8832 mentioned above, to turn the LLC from a C Corporation into an S Corporation. I know it seems convoluted. Distributions from S Corporations are not subject to self-employment tax. Which can be a nice cash flow advantage during LLC startup. S Corporations aren’t double taxed either. But they lack the flexibility of a Partnership for attracting new shareholders or adapting to current shareholder’s changing needs.

We’re a Wilmington NC Limited Liability Company CPA firm. Our virtual office allows us to provide excellent service to long distance clients. For a free initial phone consult please call (910) 399-2705

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