Taxes
Your New Tax Experts
Do you need assistance to limit your tax liability or file tax returns for a quicker refund? At Kraus & Batku, we offer a wide variety of tax services to meet the needs of your business, including:
Individual Taxes:
Individual Taxation - After years of serving clients in some of the largest metropolitan areas, our practice has obtained the expertise to navigate your specific regulatory environment and achieve desired outcomes on your return with solid professional integrity.
Some common areas that we handle on a daily basis:
For individuals with Equity Compensation, we can discuss when and how to exercise or sell your stocks/options to optimize your net after-tax income based on your vesting schedule.
For individuals with a business, we can discuss quarterly taxes as well as methods to structure your company, such as possible s-corp conversion or other types of credits & deductions.
Tax Planning
Over the years, clients have given us one important piece of feedback: they often do not want someone "just filing our taxes." Long-term strategy and building a relationship are important considerations. Some frequent topics that we are hired to discuss include:
Past-Due Tax Returns
We have been approached frequently with requests to reconcile past records and file past-due tax returns. Even if you have lost your records, our team will assist in obtaining information from the IRS and any relevant states.
We can help estimate, reduce, or eliminate taxes or interest through various abatement programs, payment plans, and debt settlements (tax reductions) that are available through the government.
ITIN Numbers - Common reasons to obtain an ITIN:
Give us a call to learn more about our individual tax services today!
Business Taxes: LLC Taxation –
LLC taxed as Sole Proprietorship
If you are the only owner, member, or equity partner of your LLC, then you would be filing your LLC business numbers from 1040, Schedule C. This is a component of your individual tax return and is not necessarily a separate return at the federal level, although it does involve separate schedules. On the stateside, you may or may not have an annual reporting requirement or separate form to submit, depending on your state. We are happy to assist with LLCs registered in any of the 50 states.
LLC taxed as Partnership
If your LLC has more than one owner, partner, or member, you would be filing as a Partnership on Federal Form 1065 and any applicable state forms. We support returns in all 50 states. The state may also have an additional LLC reporting requirement. The 1065 return is a separate return altogether that will generate K-1s, which must then be input into each owner's individual return. We will be happy to assist with both your partnership and individual returns if necessary. There are also very specific tax strategies to keep in mind.
LLC taxed as an S-Corp
The S-Corp classification must be applied for with the IRS. The purpose of converting to an S-Corp is to take advantage of decreased self-employment taxes. This is the primary reason why persons choose the S-Corp structure. In order to take advantage of this tax strategy, an S-Corp election must be filed and approved by the IRS based on specific terms. Please contact us if you need assistance with this.
Corporate and Partnership Taxation - There are three main types of business entities that require federal tax filings. Partnerships, C-Corps, and S-Corps. Below is a discussion of each, as well as a brief comment on LLCs:
Partnerships
If you have more than one member in your business but have not otherwise incorporated as an S-Corp or C-Corp, you should likely be filing this return. It is reported on Federal Form 1065 and (if applicable) certain state schedules. We support all 50 states. This default classification arises if you apply for an EIN number for a business entity that has more than one owner. This default classification also arises if you have registered an LLC with your state and that LLC has more than one owner, equity partner, or member.
S-Corp
An S-Corp is a small business corporation structure allowed by the IRS. It is reported on Federal Form 1120-S and (if applicable) certain state schedules. We support all 50 states. This is not a default classification – rather, you must apply for it and be approved by the IRS. The appeal of this classification is that it allows for decreased self-employment taxes on your individual return. These tax savings may be substantial, depending on the annual net income of your business. Please contact us for more details or to file your annual return.
C-Corps
A C-Corp is a taxable entity that pays taxes in its own right. It is reported on Federal Form 1120 and (if applicable) certain state schedules. We support all 50 states. This structure is the default classification you must file with the IRS after you file as a corporation with your state or after registering your EIN as a corporation with the IRS. The C-Corp structure allows many shareholders and is the common classification for many Delaware startups and larger businesses.
A Comment on LLCs
An LLC often has state filing requirements. We support all 50 states. However, for federal purposes, you would be filing your LLC taxes on one of two forms: From 1040 Schedule C or Form 1065. If you are the only owner, partner, or member of your LLC, then you would report on Federal Form 1040 Schedule C. If you have more than one owner, partner, or member of the business, then you would report on Form 1065 unless you have specifically incorporated as an S-Corp or other type of entity.
Please contact us anytime regarding any of these entity types as we have helped thousands of businesses of various sizes over the years.
Quarterly Taxes - If you have received income from the following items, it is very likely that you should be paying quarterly estimated taxes to the IRS. You will likely also owe tax to applicable state/local jurisdictions where you live and/or work:
Accounting:
Payroll Services - Please contact us directly for assistance with any of the following:
Bookkeeping - Our firm has over a decade of experience in bookkeeping for businesses ranging in size from a single owner to countless staff members.
Bookkeeping
We support online accounting platforms and are happy to work with whatever system you are using, provided that it is accessible through a browser. Our experience in most major platforms is extensive, leading to top-quality work.
Payroll
From one single employee to over 100, our small business services will help you put together your payroll system, administer benefits, and ensure you are in compliance with federal, state, and local codes.
Sales Tax
From setup to monthly, quarterly, or annual reports, we are happy to complete this service for you. If you have issues with sales tax or have received a notice from the state, please send it over to us at [email protected], and we will address it for you.
Tax Preparation
Whether your small business is an S-corp, LLC, Partnership, or C-corp, we are happy to assist you with annual, quarterly, or monthly filings. Some clients are not sure what entity type is best – just let us know if you need help with the selection & we will provide all tax-related guidance.
Accounts Receivable –
Billings
Invoicing, accounts receivable, etc. Done easily and online for you to access anytime. Keeps track of who has paid your invoices and who is outstanding. Accounts receivables collections reports and aging reports as well. It costs money to hire an AR clerk. We can do this for you more accurately and at less cumulative cost for your business.
Accounts Payable –
Management of payables to vendors
Payments to vendors, keeping track of spending, approval processes for vendor payments (making sure you don't double-pay or pay for a service that you didn't ask for, etc.). Since we also file taxes, our bookkeeping is recorded with tax time in mind.
Audit Services –
Audits, Reviews, Compilations
For companies of a certain size or companies with certain debt/equity funding requirements, audited financial statements may be required. This is the most thorough type of attestation service that an accountant offers in the United States.
Reviewed financial statements are required for quite a few small businesses in order to be eligible for bonds, certain types of insurance, government/municipal contracts, etc. They are also frequently requested by boards of co-ops.
Compiled financial statements do not include 3rd party verification and only include limited testing – they are basically professionally prepared financials.
We perform all three of these engagement types including audit client companies that are subsidiaries of larger firms. Please feel free to reach out for a quote below.
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Additional Services Include: