Corporate Taxes

Life Skills Class 2016

Presenter: Lee M. Cohen, CPA
Hosted by SBH

About me

Agenda

Lee M. Cohen,
CPA

Partnership,
Corporate, & NotFor-Profit Taxation
Types of Entities
Payroll Tax & Sales
Tax
Annual Report
Filing
Planning &
Projections
Registrations &

Managing Partner
LM Cohen & Company
1 West 34th Street, 8th
Floor
New York, NY 10001
T: 212-967-2300
lcohen@lmcohencpa.co
m
www.lmcohencpa.com

Types of Entities
C - Corporation
Entity is taxed on its income

S Corporation
Income is taxed to the shareholder
Distribution not subject to self
employment tax

Professional Corporation (PC)

Can be either C or S Corporation

Not-For-Profit (NFP)
Not taxed except on unrelated business
income

Types of Entities (Continued)

Limited Liability Company (LLC) &
Limited Liability Partnership (LLP)
Income is taxed to the shareholder
Income subject to self employment tax
Owners cannot be on payroll but can
get guaranteed payments

How do you form a

Company?
Important steps:
State Filing
Get a Tax ID #
Registering to do business
Choose the type of entity best for your
business vision learn all the information
regarding each entity

What is a tax return?

Form 1120 Corporate Tax Return
Due Date: March 15
Personal tax return is due April 15

Balance Sheet
Assets and Liabilities of the company

Assets & Deductions

Shows all income the company received
and any business related deductions

Schedule K-1
The partnership files a
copy of this schedule
with the IRS to report
your share of the
partnership's income,
deductions, credits, etc.

Special Deductions to Note

Charity separately stated on a K-1
Travel & Entertainment only 50%
deductible
C - Corporation
Charity deducted but limited to 10% of
income
Federal taxes paid are not deductible

Payroll Taxes
FICA Federal Insurance Contributions
Act
US Federal payroll (or employment) tax imposed
on both employees and employers to fund
Social Security and Medicare
Self Employment Tax: Discussion

FUTA Federal Unemployment Act

Payroll Tax paid by employers on employee
wages

SUI State Unemployment Insurance

Employer-funded tax that gives short-term

Sales Tax
When do you need to collect?
What is Nexus?
sufficient physical presence
Requirement for companies doing
business in a state to collect and
paytaxon sales in that state.
Sufficient presence includes employees
and/or warehouses in that state

State Taxes
Every state has their own set of
deductions, credits etc.
Home State
Any state that you are registered to do
business in (have nexus in)

City Taxes
Certain cities charge a city tax
Dont recognize S Corp or LLC

Examples
NYC S-Corp Tax 8.85%
NYC UBT (Unincorporated Business Tax)
4%

Questions?
Email: lcohen@lmcohencpa.com
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Company email list at
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