We Prepare Tax Returns!

We prepare most type of tax returns:

Individual. 

S Corporation.

C Corporation.

Partnership.

Payroll.

Amended.

Gary Bode, CPA is a Master's Degreed, nation wide accountant offering tax and business services. Member of AICPA and NCACPA. Our virtual office provides excellent service to long distance and international clients. Call (910) 399-2705 for a free phone consult.

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

Free Consult

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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Schedule C CPA discusses SMLLC Tax Preparation

CPA Wilmington NC Schedule C tax preparation for SMLLC

Schedule C tax preparation for a SMLLC is as complex as any other type of business tax return.

Schedule C CPAs saw SMLLCs  (Single Member Limited Liability Companies) proliferate during the recession—grooming dogs in the garage, handyman services, freelance writing, website design from the spare room, etc. If run by one person, a new company is a sole proprietorship by default (with the IRS) and must file Schedule C as part of the owner’s annual Form 1040. The IRS uses the term self-employed interchangeably with sole proprietorship. A sole proprietor can choose to become a Single Member Limited Liability Company (SMLLC) through registration with the Secretary of State.

“A SMLLC provides personal liability limitation for the Member, even though the SMLLC still files Schedule C. This reduces one of the three problems inherent in being self-employed.”
– Gary Bode, Schedule C CPA

Schedule C Problems

  • The IRS audit rate is higher with Schedule C.
  • Unless you become a SMLLC, you have greater personal liability for your business. If the company gets sued your personal assets are at risk. The SMLLC provides some protection.
  • You pay self-employment tax on Schedule C profit.

Schedule C Solutions

  • When we prepare Schedule C, we assume it will be audited. So we build a bullet proof return with documentation for all the numbers. Audits are never fun, but you don’t have to live in fear of them.
  • Run your SMLLC professionally. Then Schedule C takes care of itself.
  • Becoming an S Corporation reduces your chance of IRS audit. There are tradeoffs of course. Discuss it with your Schedule C CPA.
  • Becoming an SMLLC reduces your personal liability for the company. So, if your company loses a lawsuit, there could be some protection of your personal assets from the judgement. The same is true with an S Corporation.
  • Becoming an S Corporation allows some profit to escape self-employment tax. This can save thousand a year in taxes. But look at the big picture and think things through first.

Other IRS Tax Options for Companies with One Owner

A company with one owner cam choose to taxes in the following ways:

  • Sole proprietor. Files Schedule C.
  • SMLLC. Files Schedule C.
  • S Corporation. Files Form 1120-S.
  • C Corporation. Files Form 1120.

Documentation

Good documentation is vital for SMLLC Schedule C tax preparation. A mileage log is a good example. You can deduct mileage on Schedule C. Most SMLLCs track total mileage and business mileage. But some Schedule C taxpayers track total mileage and personal mileage. The mileage log must be written. You can no longer use estimates.

Estimates

Ironically, my experience with SMLLC(s) who estimate expenses for tax preparation, actually under-estimate! So good documentation usually means lower taxes.  It literally pays to be organized.

I’m a Schedule C CPA with a virtual office to serve your SMLLC wherever it operates. Call for a free consult. (910) 399-2705.

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