Saint Paul, MN (PRWEB) March 4, 2008
The new book, "How To Start And Run Your Own Corporation: S Corporations For Small Business Owners" by Peter Hupalo helps entrepreneurs understand S corporation taxes. The book is especially useful to entrepreneurs who want to do their own S corporation taxes, because the book discusses tax form 1120S, the S corporation tax return, and the corresponding K-1 forms in detail. For tax year 2007, most S-corporation returns are due March 17, 2008.
In addition to explaining Form 1120S and shareholder K-1 forms, the book covers Schedule K, Schedule M, Schedule M-1, shareholder basis, and the Accumulated Adjustment Account (AAA).
"I think it's good for an entrepreneur to have a basic understanding of taxation. While some entrepreneurs do their own taxes, others choose to have a professional do their taxes. I think my book helps entrepreneurs communicate with their accountant even if they choose not to do their own taxes," says Hupalo.
Hupalo says S corporations are popular with many knowledgeable entrepreneurs because money not paid to shareholders isn't subject to employment taxation. "Today, Limited Liability Companies (LLCs) are popular because they're less complex. For example, a one-person LLC doesn't need to worry about wage reporting, W-2's, etc. A one-person S corporation still must treat its CEO as an employee. That introduces some annoyance and paperwork."
"But, on the positive side, many small businesses retain tens of thousands of dollars within the company to grow the business," continues Hupalo. "With sole proprietorships or LLCs taxed as sole proprietorships, all net income is subject to self-employment tax. With S corporations only money paid to officers as salary is subject to employment tax."