BUSINESS SERVICES

Business Tax Advisory & Preparation

Our experienced team at Evans Sternau CPA provides personalized strategies to optimize your tax situation, ensure compliance, and enhance your financial growth. Let us help you navigate the complexities of tax regulations and maximize your business potential.

Key Reasons Tax Advisory & Preparation are Important

Tax advisory and preparation services are crucial for businesses as they help navigate the complex and ever-changing tax landscape. Proper tax planning can significantly impact a company’s bottom line by minimizing tax liabilities, ensuring compliance with regulations, and identifying potential deductions and credits that may otherwise be overlooked. Working with a CPA brings additional advantages to the process. CPAs possess specialized knowledge of tax laws and regulations, enabling them to provide strategic insights tailored to a business’s unique financial situation. Their expertise can help identify tax-saving opportunities and develop proactive strategies that align with the company’s overall goals.

INFORMATION COLLECTION
COMPLEMENTARY TAX SAVINGS ANALYSIS & REVIEW
TAX STRATEGY IMPLEMENTATION
ANNUAL PERFORMANCE REVIEW & MAINTENANCE
ONGOING SERVICES

Ongoing Services Packages

On-Call Tax Consulting

We are committed to being available to our clients – in fact, we’ll answer your call, return it within an hour, or schedule time to talk ASAP.

Annual Tax Planning

We meet with you during the year to make adjustments before year-end – including implementing tax strategies and future-planning.

Tax
Projections

We prepare an estimate of your obligation in order to minimize penalties and give you a better handle on cash flow.

Tax Advisory

On-call tax consulting

Annual tax planning meeting

Annual tax projection

Quarterly tax projections

Essential

Premium

Concierge

Return Type

Individual

Trust

Business

Starting Price

$675

$850

$1,500

How We Can Help

Allocation & Apportionment
Tax planning for allocation and apportionment of state income involves strategically distributing a multistate business's income among different states for tax purposes. Businesses must allocate income to the states where they operate based on factors like sales, payroll, and property. Apportionment then assigns a portion of total income to each state, considering these factors. Effective planning optimizes these calculations to potentially reduce overall state tax liabilities by shifting income to states with lower tax rates or favorable rules. It requires careful analysis of business operations and state tax regulations to ensure compliance and minimize state tax burdens.

Asset Sale vs Stock Sale
An asset sale and stock sale differ primarily in how they transfer ownership of a business and their taxation implications. In an asset sale, individual assets of the company are sold, potentially resulting in varying tax treatments for different assets. The buyer can allocate the purchase price to specific assets, affecting their future tax basis. In a stock sale, the buyer purchases the company's stock, acquiring all its assets and liabilities. This can result in simpler transition but might not offer a step-up in tax basis. Taxation varies; asset sales can trigger capital gains, while stock sales might benefit from lower capital gains rates and potential avoidance of double taxation for C corporations.

Cash Flow Forecast
A cash flow forecast is a financial projection that outlines the expected inflows and outflows of cash for a specific period, typically monthly or quarterly. It provides insights into a business's liquidity by estimating when and how much cash will be received from sales, investments, and financing, as well as when and how much cash will be spent on expenses and investments. Cash flow forecasts help organizations anticipate potential cash shortages or surpluses, aiding in strategic decision-making, budgeting, and ensuring sufficient funds for operations, debt payments, and growth initiatives.

Converting from C Corporation to S Corporation
Converting from a C corporation to an S corporation involves changing the way a business is taxed at the federal level. As an S corporation, the company's income and losses "pass through" to the shareholders, who report these on their individual tax returns. This transition can lead to potential tax savings as it often results in a single level of taxation, as opposed to the double taxation that C corporations face, where the company's profits are taxed at the corporate level and again when distributed to shareholders as dividends.

Entity Selection
Entity selection, in the context of taxation, refers to the legal structure a business chooses, such as sole proprietorship, partnership, corporation, or LLC. This decision has significant implications for how the business's income is taxed, including the owner's personal liability, the complexity of tax reporting, and the available deductions and credits. Each type of entity is subject to different tax rules and rates, so selecting the right one is crucial for optimizing tax efficiency and minimizing liabilities.

Installment Sale
An installment sale is a sales transaction in which the seller receives payments for a sold asset over time, rather than receiving the full payment upfront. This arrangement can offer tax benefits by spreading out the recognition of the gain from the sale over multiple tax years. This approach can potentially result in lower tax liabilities in each year, as only the portion of the gain received in that year is taxable. Installment sales are often used for real estate and business sales, allowing both parties flexibility in managing tax consequences and easing the financial burden of a large lump-sum payment.

PTE
A PTE (Pass-Through Entity) state deduction is a tax benefit available in certain U.S. states that allows owners of pass-through entities, such as S corporations, partnerships, or LLCs, to deduct a portion of their state income taxes at the individual level. The deduction is often used to alleviate the impact of the federal $10,000 limit on state and local tax (SALT) deductions, which was imposed by the Tax Cuts and Jobs Act of 2017. PTE state deductions can vary by state and are designed to help business owners reduce their overall tax liability by shifting some state income tax deductions from the entity level to the individual level.

Quality of Earnings
A quality of earnings (QoE) report is a comprehensive analysis of a company's financial statements and performance metrics, aimed at assessing the accuracy and sustainability of its reported earnings. This in-depth evaluation examines various factors, such as revenue recognition practices, expense management, and cash flow patterns. The goal is to uncover any irregularities or discrepancies that might impact the credibility and stability of reported earnings. Investors, analysts, and potential buyers use QoE reports to make informed decisions about investments, acquisitions, or partnerships, ensuring they have a clear understanding of a company's financial health and the reliability of its earnings.

Qualified Small Business Stock Code Sec. 1202
Qualified Small Business Stock (QSBS) refers to shares in a qualified small business that meets specific criteria outlined in the U.S. tax code. Investors who hold QSBS for at least five years may be eligible for significant tax benefits upon sale. This aims to encourage investment in early-stage startups and small businesses. Certain restrictions and conditions apply, such as the company's industry, asset value, and holding period, making QSBS an attractive option for investors seeking tax advantages in their portfolios.

Real Estate Professional
Real estate professional status is a classification under U.S. tax law that allows individuals heavily involved in real estate activities to offset their rental real estate losses against their other income without being subject to the passive activity loss limitations. To qualify, one must spend more than 50% of their working hours and more than 750 hours annually in real estate businesses in which they materially participate. Achieving real estate professional status can be advantageous for active real estate investors, as it provides greater flexibility in deducting losses, potentially reducing overall tax liability.

Real Estate Short Term Rental
Short-term rentals, like those through platforms such as Airbnb, offer potential tax advantages. Hosts may deduct a portion of expenses like mortgage interest, property taxes, utilities, and cleaning costs, prorated based on the rental's personal vs. rental use. Additionally, hosts can potentially claim depreciation on the property. However, specific rules apply, like the "14-day rule," where rentals used personally for 14 days or less don't count as rental income. These tax benefits can help offset rental income, reducing taxable profit. Proper documentation and adherence to tax regulations are crucial to fully realize the tax advantages of short-term rentals.

S Corporation Election
S Corporations are corporations that elect to pass corporate income, losses, deducitons, and credits through to their shareholders for federal tax purposes. Shareholders report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. The main benefit is to save on self employment tax, which totals 15.3%. An owner of an S corporation must take a reasonable salary from the S corporation, this reasonable salary is subject to payroll taxes/self employment taxes, the profit of the business is not subject to self employment taxes.

Tax Due Diligence
Tax due diligence is a comprehensive review and analysis of a company's financial and tax records to assess its tax compliance, liabilities, and risks, typically conducted during mergers, acquisitions, or financial transactions. It involves examining past tax returns, financial statements, and other relevant documents to identify potential issues or liabilities that could impact the transaction. The goal of tax due diligence is to provide a clear understanding of a company's tax position, allowing the parties involved to make informed decisions and plan for any necessary adjustments or contingencies related to taxes.

Texas Franchise
Tax planning for the Texas franchise tax involves strategic management of the state tax obligations for businesses operating in Texas. This tax is based on a business's gross receipts and varies by entity type and industry classification. Effective planning aims to minimize the impact of the franchise tax through methods such as optimizing deductions, credits, and exemptions, while ensuring compliance with Texas tax laws. Businesses need to carefully analyze their financials, business structure, and industry specifics to strategically manage their Texas franchise tax liability and make informed decisions that align with their financial goals.

More About Evans Sternau CPA

Our core values are proactiveness, responsiveness, and support – they help us ensure that we continue to serve each and every one of our clients to the highest level possible

Proactiveness: Tax, accounting, and advisory isn’t just about solving problems when they arise – Evans Sternau CPA implements better solutions and performs routine checks year-round.
Responsiveness: Keeping all parties informed, always, means everyone is operating with full awareness and to the fullest extent.
Support: Whatever your tax, advisory, and accounting needs are, Evans Sternau CPA guarantees that we make each and every one of our clients feel supported when they work with us.

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Need Tax Advisory & Preparation Services?

Evans Sternau CPA has the skills and experience needed to provide our clients with tax advisory and preparation services that make tax season a breeze. Call us today or fill out our questionnaire to get a quote.

BUSINESS SERVICES

Business Tax Advisory & Preparation

Our experienced team at Evans Sternau CPA provides personalized strategies to optimize your tax situation, ensure compliance, and enhance your financial growth. Let us help you navigate the complexities of tax regulations and maximize your business potential.

Key Reasons Tax Advisory & Preparation are Important

Ongoing Services Packages

On-Call Tax Consulting

Annual Tax Planning

Tax
Projections

Tax Advisory

On-call tax consulting

Annual tax planning meeting

Annual tax projection

Quarterly tax projections

Essential

Premium

Concierge

Return Type

Individual

Trust

Business

Starting Price

$675

$850

$1,500

How We Can Help

More About Evans Sternau CPA

INSIGHTS FOR YOU

What Is Cost Segregation? Definition and Key Benefits

Understanding the 83(b) Election: When Should You Make the Move?

Understanding Passive Activity Loss Limitation Rules: Beyond Real Estate

Need Tax Advisory & Preparation Services?

Contact Us

Locations

Business Services

Individual Services

Get our newsletter!

BUSINESS SERVICES

Business Tax Advisory & Preparation

Our experienced team at Evans Sternau CPA provides personalized strategies to optimize your tax situation, ensure compliance, and enhance your financial growth. Let us help you navigate the complexities of tax regulations and maximize your business potential.

Key Reasons Tax Advisory & Preparation are Important

Ongoing Services Packages

On-Call Tax Consulting

Annual Tax Planning

Tax Projections

Tax Advisory

On-call tax consulting

Annual tax planning meeting

Annual tax projection

Quarterly tax projections

Essential

Premium

Concierge

Return Type

Individual

Trust

Business

Starting Price

$675

$850

$1,500

How We Can Help

More About Evans Sternau CPA

INSIGHTS FOR YOU

What Is Cost Segregation? Definition and Key Benefits

Understanding the 83(b) Election: When Should You Make the Move?

Understanding Passive Activity Loss Limitation Rules: Beyond Real Estate

Need Tax Advisory & Preparation Services?

Contact Us

Locations

Business Services

Individual Services

Get our newsletter!

Tax
Projections