"Do you work with businesses that are behind in their payroll taxes and need a payment plan to repay them?"

December 10, 2005
We do try to help people with their payroll problems. The IRS is quite strict when it comes to businesses that don't pay their withholding taxes on time. The penalties are high but if the business owner makes the current payroll payments on time then the Internal Revenue Service will allow installment payments on the prior payroll periods. Pictured above is our cruise stateroom while arriving at Tortola, British Virgin Islands. Henry (CEO)

"Please explain what is the tax advantage of an 'S' corporation."

December 5, 2005
From a tax point of view, generally an 'S' corporation only pays tax on the profits and not on the withdrawals, unlike a 'C' corporation which pays a tax on the profit AND the stockholder pays on the dividend withdrawals. Sole proprietors; limited liability companys (LLC); and partnership income is generally subject to self-employment taxes. 'S' corporations don't pay any self-employment taxes on the profits, however the Internal Revenue Service does expect the owners to pay a "reasonable" compensation for services provided to the corporation by the owners. Pictured above is my wife at a small village in Tortola, British Virgin Islands. Henry (CEO)