Whether you are an equity-backed startup or an established corporation, you need to work with tax preparers who understand growth, who can advise you efficiently on tax compliance risk, who understand the importance of being more than “form fillers”, and who understand how to leverage partnerships to get you more sophisticated support when it is required.
We understand what private investors, venture capitalists, and private equity firms are going to expect your “cap table” to look like, and how important it is that your structure is compliant with U.S. federal and state income tax and sales tax requirements.
We also understand what CFOs and upper management are looking for when it comes to a U.S. corporate tax return. Let us take care of your tax compliance needs so that you can focus on running your company.
Did you know that the IRS requires that all corporations file tax returns annually, regardless of whether or not the company was profitable during the tax year? Further, corporate tax returns are needed for businesses who have incorporated as either C-corporations or S-corporations.
C-corporations pay tax on all profits, minus any deductions. On the other hand, S-corporations have the option to choose to be taxed as either as a corporation or as a partnership, where the business is treated as a “pass-through entity”, and the profits are reported directly on the owner’s personal tax return.
Corporate tax returns are typically due on March 15th (for S-corporations) or April 15th (for C-corporations) each year; however, corporations may request an additional six-month extension to file their returns. Additionally, many Corporations may also have to make installment payments (also known as quarterly estimated tax payments) in April, June, September and December. Please note that these are only some of the filing requirements for corporations; therefore, it makes sense to have a professional team on your side to keep you up-to-date with all the required tax filings.
Corporate tax returns report the company’s profits and expenses to determine the amount of tax the company owes to the US government. The return consists of several forms that provide information such as the income and expenses, dividends and deductions, officer compensation, details about the accounting method used, business type, NAICS classification number, and balance sheet, among other information.
The information necessary to file corporate tax returns varies, but generally includes the following:
Fortunately, Corporations are able to claim many tax-deductible expenses against income. The deductible expenses include:
We understand the tax driven nuances that start-ups face, and whether to “check the box” or not to “check the box”. We also understand the myriad of tax filing requirements that are unique to partnerships, given that partnership tax law is the most complex area of the US tax code. With this in mind, it makes sense to have a trusted professional at your side, who understands the filing requirements and can ensure your partnership tax returns are lodged correctly and on a timely basis.contact us about partnerships
In contrast with corporations, Partnerships are not liable for federal business tax. Instead, the income and expenses associated with a partnership generally flow to each partner’s individual tax return. Annual partnership returns must be filed annually on Form 1065. The annual partnership tax returns include forms showing each partner’s share of that business. The IRS requires these returns to be filed for any US-based business and requires all partners, whether or not they are US-resident, to follow the rules.
All US-based domestic or foreign partnerships with income effectively connected with a US trade or business must file annual tax returns (Form 1065), including forms that report information about the partnership and its income and deductions. As you may have guessed, partnerships with foreign members have additional filing requirements. Partnerships that allocate taxable income to a foreign partner must also pay a withholding tax and file additional forms, such as Forms 8804, 8805, and 8813. In order for foreign partners to claim refunds on the withholding tax, they must file a personal tax return with a valid taxpayer identification number (ITIN).
There are numerous steps to completing a partnership tax return, and due to the complicated nature of international tax law, not to mention US tax law, it is wise to work with an experienced tax preparer who is familiar with the rules and regulations, and who is able to help minimize your tax burden. At Polo Tax, we collect the appropriate documentation, including:
Once the information is gathered, we prepare the appropriate forms required for your partnership tax return. If necessary, depending on the state your partnership is located in, we will also prepare your state tax returns to ensure your compliance with any state obligations such as franchise, excise, or sales tax. Throughout the preparation of the returns, we do everything we can to ensure the process is as efficient and straightforward as possible for you.
Our personal level of service ensures that whatever your requirements you are treated in a manner that recognises you for who you are. We have specialist resources that have the technical and industry knowledge to provide both professional advice and practical solutions.
Through a combination of academic qualifications and practical experience our professionals are able to provide you with guidance and solutions to a wide range of tax, business and accounting issues. Our view is that by us ‘integrating’ your home country tax issues with your arrival country tax issues you will be in a better position than working with different service providers.