San Rafael, CA (PressExposure) July 08, 2009 -- Tax reduction expert Murray Bradford has posted a primer on incorporation. The article, available for free to anyone who visits the Bradford Tax Institute, is titled "Corporate Structures and Tax Rates" and helps one-owner and husband-and-wife businesses begin to determine whether to incorporate as a C corporation or as an S corporation. Most tax deduction tips and strategies posted to the Bradford Tax Institute, a tax reduction resource containing a large archive of Bradford's articles from the Tax Reduction Letter, are available only via subscription.
"We design the information available at Bradford Tax Institute to be useful to laypeople and tax professionals alike as they make tax decisions of considerable import," said Bradford, whose expertise in tax reduction comes from 30 years in accounting, including a lengthy stay at Price Waterhouse. "For instance, one of the most daunting decisions a self-employed taxpayer can make is whether or not to incorporate at all, and additionally, whether to do so under an S corporation or under a C corporation. The pros and cons differ significantly and are further complicated by projected income and the type of business conducted."
Publisher of the Tax Reduction Letter every month, tax reduction expert Murray Bradford, CPA, has years of experience in developing and implementing small business tax reduction strategies. A former accountant for Price Waterhouse, Bradford is founder of several tax reduction strategy businesses. Quoted in national publications such as The Wall Street Journal and featured on national programming such as Financial News Network and CNBC, Bradford has helped more than 500,000 self-employed taxpayers realize an average of $17,700 in new tax deductions. His popular courses provide actionable small business tax advice.
Individuals who operate as a C corporation are subject to double taxation as well as taxes pertaining to personal holding companies, Bradford's article warns, but can nevertheless earn greater income under select circumstances. Additionally, even though it enables the small business owner to avoid double taxation, the S corporation presents other possible complexities, notes Bradford's article, which goes on to advise that both types of incorporation warrant a thorough evaluation of the business and projected income.
Whether they resolve to become an S corporation or a C corporation, many small businesses find themselves qualifying as a personal service corporation, a topic Bradford also covers. Most professional services (e.g., legal, consulting, etc.) qualify as a personal service corporation, and anyone who operates under this criterion must take care that the associated corporation's income equals as close to zero as possible at the end of each year; without exceptions, anything greater than zero falls within the 35 percent tax bracket.
"Many accountants have their preferences when it comes to S corporations vs. C corporations, and many will automatically steer their clients toward one or the other," said Bradford. "But everyone's circumstances are different, and smart taxpayers understand that the different types of incorporations come with several nuances that can have a significant impact on their take-home income. These taxpayers are careful to edify themselves before making any decisions."
Taxpayers and tax professionals can view a Bradford Tax Institute video tutorial and learn how to gain access to nearly 400 Tax Reduction Letter articles at the site, with more on the way. Each presents tax reduction tips in plain English for tax laypeople and includes annotations for savvy accounting professionals. The last three issues are available through a 7-day free trial of the Bradford Tax Institute. Readers who decide to subscribe to the Tax Reduction Letter right now, however, receive immediate access to the entire archive.
"Tax Strategies for the Self-Employed (2009)" is also available. In this annual course, Bradford shares tax deduction tips designed to help one-owner and husband-and-wife businesses navigate the maze of rules they must follow to properly determine and report their income. Readers who order this tax reduction course immediately gain access to 171 tax lowering strategies that draw on Bradford's expertise from 30 years in accounting. His tutorial on S corporations, for instance, is one such strategy, made available for free. Those interested may first watch a video that shares seven free insights into reducing and audit-proofing their taxes.