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Making Notes

ENTITY STRUCTURING

 

Our goal with entity structuring is not only to look at today, it is look five or ten years down the road and build a structure that is not only sound today but will be sound tomorrow. 

We offer the formation of corporations, limited liability companies, limited partnerships, and other entities.

 

We can also act as the registered agent.

 

entity types
Business Team

My business has had the same structure for years. Should I change it?

The U.S. Small Business Administration advises business owners to weigh the importance of five characteristics when considering such a change:

  • Liability

  • Taxation

  • Fees and forms

  • Investment needs

  • Operational continuity

  • Some events that could lead to a change in entity structure include significant growth, a change in ownership (such as a partner retiring or stepping down), or a nuance in tax laws that make it advantageous to change structure.

We can help you decide what is best for your business. Contact us today for a free consultation.

Choosing An Entity Structure

The entity structure you choose affects a variety of decisions you will make down the road, such as expanding your workforce, determining your tax liability and offering stock options. So, whether your business is just starting out or on the precipice of change, it is important to understand the basic tax entity structures available and how they can impact your plans.

  • What Is An Enrolled Agent?
    Enrolled agents (EAs) are America's Tax Experts®. EAs are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS.
  • What does the term “Enrolled Agent” mean?
    “Enrolled” means to be licensed to practice by the federal government, and “agent” means authorized to appear in the place of the taxpayer at the IRS. Only enrolled agents, attorneys, and CPAs have unlimited rights to represent taxpayers before the IRS. The enrolled agent profession dates back to 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings with the U.S. Treasury Department.
  • How does one become an Enrolled Agent?
    The license is earned in one of two ways, by passing a comprehensive examination which covers all aspects of the tax code, or having worked at the IRS for five years in a position which regularly interpreted and applied the tax code and its regulations. All candidates are subjected to a rigorous background check conducted by the IRS.
  • How can an Enrolled Agent help me?
    Enrolled agents advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. Enrolled agents’ expertise in the continually changing field of taxation enables them to effectively represent taxpayers at all administrative levels within the IRS.
  • Privilege and the Enrolled Agent
    The IRS Restructuring and Reform Act of 1998 allow federally authorized practitioners (those bound by the Department of Treasury’s Circular 230 regulations) a limited client privilege. This privilege allows confidentiality between the taxpayer and the enrolled agent under certain conditions. The privilege applies to situations in which the taxpayer is being represented in cases involving audits and collection matters. It is not applicable to the preparation and filing of a tax return. This privilege does not apply to state tax matters, although a number of states have an accountant-client privilege.
  • Are Enrolled Agents required to take continuing education?
    In addition to the stringent testing and application process, the IRS requires enrolled agents to complete 72 hours of continuing education, reported every three years, to maintain their enrolled agent status. Because of the expertise necessary to become an enrolled agent and the requirements to maintain the license, there are only about 46,000 practicing enrolled agents.
  • What are the differences between Enrolled Agents and other tax professionals?
    Only Enrolled Agents are required to demonstrate to the IRS their competence in all areas of taxation, representation and ethics before they are given unlimited representation rights before IRS. Unlike attorneys and CPAs, who are state licensed and who may or may not choose to specialize in taxes, all enrolled agents specialize in taxation.
  • Are Enrolled Agents bound by any ethical standards?
    Enrolled agents are required to abide by the provisions of the Department of Treasury’s Circular 230, which provides the regulations governing the practice of enrolled agents before the IRS.
  • How can I find an Enrolled Agent?
    You might want to check in your local yellow pages under "Tax Preparation," and look for the phrase "Enrolled Agent, Enrolled to Represent Taxpayers before the IRS" or the EA credential following the professional’s name.
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