Category: Tax Consulting

USAGE OF C CORPORATIONS REQUIRE ADHERENCE TO THE FORM AND SUBSTANCE

For all clients who use a multiple corporation set up, they are aware that they must submit invoices for services performed.  The services must be actually performed and at an arm’s length pricing. The contract between the companies must be in writing and should also be approved within the minutes of the company paying for such services.  Further, if questioned the client must be able to establish the essentials of an arm’s length agreement.  Yet notwithstanding specific direction on how to determine an arm’s length price, having and following a written agreement, some companies do NOT follow the basic requirements to have this type of strategy successfully implemented.

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The Employee Retention Credit: Not Just for the Down-Trodden

Given the many compelling political events that occurred during the final months of 2020 (and into 2021), some business owners might not have been as closely focused on the significant changes to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act[i], that, in many cases, could make a substantial and positive financial impact upon their respective businesses.

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