Operating a PA can reduce your liability and possibly your taxes. Let us show you the benefits of creating a PA for your business. All PA’s will require a tax filing as an S-Corp with the IRS. You will also have to file a personal tax return showing the profits of your PA.
- Tax Return for PA
- Creating a Professional Association (or “PA”) is probably the easiest thing you can do to protect you and your business, while possibly reducing how much you pay in taxes. Having a PA means that your clients will pay your business instead of yourself. This could help you in many ways
- Reduce Liability
- Reduce Taxes
- More Professional
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- Tax Return for Your PA
- When you choose to operate under a PA, it is very common to convert your PA into an S-Corporation. This is an entity type (recognized by the IRS) that has the benefit of pass-through taxation. This is a advantage to you and your business. Each year, you will have to file a Tax Return for your PA and yourself. Below are some important dates and information we will require
- S-CORPS – Need to be filed by March 15. Extensions can be filed and will extend due date to Sept 15.
- INDIVIDUALS – need to file by April 15. Extensions can be filed and will extend due date to Oct 15.
- INCOME – We will need to report all of the income your PA made for that fiscal year.
- EXPENSES – As with any business, there are a ton of expenses we can include to lower your income and profit. We will need all your expenses your PA incurred for that fiscal year.
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