Robert L. Rojas, CPA, M.S. – Taxation, CExP, Rojas & Associates, CPAsLos Angeles, Newport Beach, Sacramento, rojascpa.com J. Michael Pusey, CPA, National Tax Director Introduction This article is to help entrepreneurs, owners and their advisers understand the tax implications which follow the choice of setting up your business operations. We offer a detailed look at the C corporation. We cover ownership by the individual (the sole proprietorship), the S corporation, and the partnership. A C corporation is simply one which hasn’t elected S corporation status for a particular year. It is possible for a corporation to have a history that includes C corporation status for some periods and S corporation status for other periods. A single individual cannot be a partnership, although spouses can operate as a partnership. Thus it is possible for a single individual to operate a business as a C corporation or S corporation. The limited liability … [Read more...] about Incorporating Your Business – A Planning Opportunity and a Puzzle
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Tips on Registering your Charity
This article was first published in December 2016 on the Planned Giving Design Center website. Download the article Watching charities is a necessary government function because, while rare, there's an occasional bad charity, and any number of charities whose activities may deserve occasional scrutiny. The first step in this process is requiring the charities to register with the state's group that monitors charities. Regulatory Scrutiny Grows Our purpose is to put this topic in some general perspective, making every effort to be brief with a topic that is inherently complex. There are about forty jurisdictions that may require registration. We look generally at such questions as when registration is required and the costs. There is soon to be a centralized, electronic place where the charity can register once and this gets sent to myriad jurisdictions. The vehicle is to be launched in upcoming months with some thirteen initial governmental participants. See "Simpler … [Read more...] about Tips on Registering your Charity
Selling Your Dental Practice: Part I The Transition Period
By Bob Rojas, CPA Selling a dental practice requires negociation and agreement on many issues. This article will cover the transition period. This is the period between settlement and when the seller exitits the practice. One major variable is how long the seller would like to continue practicing, and when the seller would like to retire. There is an entire spectrum of possibilities to include retiring as soon as the practice is sold to working full time for a period and phasing out gradually. Keep in mind if the seller wants to keep practicing there needs to be enough patients to keep two doctors busy. Practices with two or more offices make scheduling easier two doctors easier. If the seller stays it is important to list hours, days, benefits and compensation in the agreement. Generally the seller is paid a percentage of collections as would an associate. If the seller stays a period shorter than six weeks, generally there is no compensation and it is just considered a … [Read more...] about Selling Your Dental Practice: Part I The Transition Period
Taxes and Marriage The Marriage Penalty Tax
Call me old fashioned, but I love being married. When I met my future wife, we fell in love and we were married. I had a Masters Degree in Tax and helped many clients minimize their taxes. I knew exactly what our marriage would cost me in income. We were married despite the Marriage Tax Penalty. We are still in love and I love being married. We continue to endure the Marriage Tax Penalty. Why does our Tax Code penalize married people? In 1990 55% of US households were married, in 2000 51% and in 2010 it is 49%. The marriage penalty came from the Tax Reform Act of 1969. At the time most families had one income earner and it was designed to help those families. It was even referred to as the marriage bonus tax as a single earner with a family paid less tax than an earner without a family. In 1960 72% of all people were married. Today most households have two income earners but only 52% of US people are married. This is why we use the phrase marriage penalty tax. … [Read more...] about Taxes and Marriage The Marriage Penalty Tax
Your DDS Audit – Benefits To You And Your Business
What are some uses for my DDS Audit or Reviewed Financial Statement. The obvious is I give it to my regional center and I am in compliance and allowed to continue my vendor relationship with the California Department of Developmental Services as well as my Regional Center. That is a given. Here are a few other uses you may not have thought of. Marketing: I can use my audit report to show new clients I am certified in compliance with California State Regulations. Finance: I can use my audit report at my bank. This verifies my income and is useful to obtain loans or refinance. Taxes: My audit report includes a full review of my tax returns. It's common for me to find areas which can save vendor's tax money. Liability: One of the areas I look at is your LLC, Corporation or business set up. We can help you reduce your liability by keeping your business clean and less vulnerable to law suits. A corporation which is set up wrong or improperly maintained makes the … [Read more...] about Your DDS Audit – Benefits To You And Your Business
DDS Audits and Reviews Continue
DDS Vendor audits and reviews continue. Some Vendors still need to complete their 2011 Audit. Our CPA Audit Department can still complete these audits and reviews for you. The fifteen percent rule is critical in DDS Audits. We understand the 15% rule and know which service codes are exempt. As a CPA and a firm it has been our privilege to help DDS Vendors with their companies. We love working with you and we are proud to be a part of your noble service to our community. Bob Rojas … [Read more...] about DDS Audits and Reviews Continue
DDS 2011 Audit and Review Requirements
Many DDS vendors believe they do not need a 2011 Audit or Review. The California State Assembly Bill clearly requires all DDS vendors whose revenues exceed $250,000 need a Reviewed Financial Statement from a Certified Public Accountant. DDS Vendors whose revenues exceed $500,000 in 2011 require a full audit. This is not based on partial year nor your orientation (fiscal or calendar year) This is California State Law and can not be waived by any DDS Regional Center. As a CPA Audit Firm we are very careful to be certain a vendor actually needs an audit. We look at vendor's service codes and revenues and rates. We can not complete a 2012 audit without first checking for a need for a 2011 audit. If 2011 revenues call for an audit, the 2011 audit must be completed before we can issue a passing 2012 audit. I am happy to discuss this requirement more with any DDS vendor as I know this has been confusing in the past. … [Read more...] about DDS 2011 Audit and Review Requirements
DDS Audits in California
We are a bit farther along in the DDS Audit Process. One of the most frequent questions is about the 15% rule for DDS Audits. The rule is complex, but also it does apply. A little study of the actual California State Senate Bill sheds more light on the subject. There are actually two parts to the bill and the later clarifies which funds are affected and not affected by the 15% overhead. The variable is the vendor's classification and rate codes. It is easier to address each individual case rather than describe each scenario on my blog. Another common hurdle is vendor record keeping. Many smaller entities have kept manual records. These can range from Excel Spread sheets, to a notebook with entries to a box full of receipts and bills. AICPA Audit Standards require records to be in a standardized format. This allows the audit firm to be audited. All California CPA firms who perform audits and reviews are themselves audited. Acceptable record keeping would be software … [Read more...] about DDS Audits in California
Latest DDS Audit Requirements
This is my latest information from California DDS its a bit long to post, but here is the link. I hope this is helpful to you. If you have further questions, please post to this site or call me. I am more than happy to help. DDS Audit Letter We will update you are we have more information. Bob Rojas … [Read more...] about Latest DDS Audit Requirements
5 Basic Rules of Safety For The Internet
Recently PC Magazine published an article on how to stay safe on the internet. These are basic ideas but I thought worth repeating. Good advice is always worth repeating. 1. If you write into blogs, don't use your e-mail address as your user name. Spammers and Web Crawlers love to copy these off public places and send your lots of span and ads. Don't put your email address in any Facebook comments. Just because you have good privacy settings does not mean all your friends have good privacy settings. 2. Do not write back to spammers. Your angry note asking the to remove you from their list actually verifies your address. They can now sell your email address as confirmed and charge more money. 3. I know you are smarter than this, but do not click links from people you do not know. The bigger the prize the bigger the hoax. You always hope your anti virus software will protect you, but how lucky do you feel? 4. Do not give people your password. They may only want … [Read more...] about 5 Basic Rules of Safety For The Internet
