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Business Manager
Asked Wednesday, September 24, 2025 by JDWould it make more sense (and be easier) to convert from an S Corp to an LLC or dissolve the business and start new as an LLC. The business has not made much profit in the past few years.
CPA Answer:
If your S Corporation hasn’t been profitable in recent years, simplifying your structure may make sense. Whether to convert or dissolve depends on your goals and state rules.
If the entity is clean and you want continuity (same EIN, bank accounts, and contracts), a legal conversion from S Corp to LLC is typically the smoother route. However, if the business has old liabilities, inactive operations, or you want a fresh start, dissolving the S Corp and forming a new LLC can be more practical.
Either option should be reviewed with your CPA and legal advisor to ensure compliance with both state filing requirements and IRS entity classification rules.
Nyquaise Moteng
W4 for new job federal form
Asked Friday, September 19, 2025 by JaclineHi there, I started a new job and I received almost a full check and I noticed no federal taxes were taken out. I file the same way as I always have, married/filing jointly, 1 dependent at the $2000 and submit. My last position took taxes out and this job has not. My state taxes for California such as SDI, and Medicare were taken out. I’m a little confused because I’ve never had 0 on the federal portion. I claim one allowance for California as well but I know that doesn’t affect the federal.
Quick Answer:
Federal taxes
Asked Thursday, September 18, 2025 by SimoI opened a company in Wyoming last year Eternia Solutions LLC as a sole proprietorship (single-member LLC disregarded for tax purposes). I was told that there is no state tax in Wyoming, but I want to confirm how federal taxes work in my situation. I am not resident of USA. This year my company’s revenue will be about $32,855. I have withdraw ~$9,780 via ATM, and probably i will withdraw the rest. I heard that there are some federal taxes, even WY is tax free. I need clarification about this?
CPA Answer:
Hi Simo,
Hope you're doing well.
Whether federal tax applies depends on whether the income earned by your Wyoming LLC is treated as effectively connected income (ECI) with the United States. If the activity is considered ECI, federal tax would generally apply and a Form 1040-NR filing would be required. If it is not ECI, the U.S. may still have other reporting requirements depending on the nature of the income and where the services are performed, but federal income tax may not be triggered.
Let me know if you’d like a detailed review of your specific situation.
Regards,
Alfaisal
Single-member LLC
Asked Tuesday, September 16, 2025 by DeenI have a single-member LLC (Deenil Groups LLC) that is registered neutral but I runs a transportation & tour business with, then makes income, can I use some of the money made from the income as a down payment for a condominium for business or house for business without getting into any tax problems? Or buy a vehicle for the business. What is the best way to do it? I will appreciate your response. Thank you!
Quick Answer:
Single-member LLC
Asked Tuesday, September 16, 2025 by DeenI have a single-member LLC (Deenil Groups LLC) that is registered neutral but I runs a transportation & tour business with, then makes income, can I use some of the money made from the income as a down payment for a condominium or house without getting into any tax problems? Or buy a vehicle for the business. What is the best way to do it? I will appreciate your response. Thank you!
Quick Answer:
Late Filing of Form 2553 and Payroll Tax Return Concerns
Asked Friday, September 12, 2025 by WendyI’m in the process of filing a late Form 2553, and as you know, the effective date must be retroactive to the beginning of the year. My main concern is how to handle the payroll tax returns, specifically Forms 941 and RT-6, since no wages have been paid and all returns would reflect zero liability. My question is: how would you recommend handling the 941s and RT-6 filings in this case to avoid penalties for the quarters that were missed, considering there was no payroll activity?
Quick Answer:
LLC Formation inquiry
Asked Tuesday, September 09, 2025 by AdamHello, I live in Illinois and plan to form a Wyoming LLC that will only sell digital software online worldwide. I will have no office, employees, or no business presence in Illinois as it is entirely digital, but since I live here, I want to confirm if I have to foreign qualify/register the LLC in Illinois, and which state taxes or other requirements would still apply to me personally.
Quick Answer:
Implications for Responsible party using SSN for filing with IRS for EIN/TIN
Asked Monday, September 08, 2025 by CharlieWe’ve set up a VA corp wholly owned by our UK parent. One US citizen officer (VP of Growth) could be listed as IRS responsible party to get EIN instantly, or we can file with a foreign director (slower). What are the implications for her if she’s the responsible party now and later removed via 8822-B? Any ongoing exposure/liability? Or if indeed she remains as responsible party and isn't removed? What are the implications if she leaves the business?
Quick Answer:
Sales Tax in Florida
Asked Monday, September 08, 2025 by DeidreI am an independent author and want to sell my books at a local convention. How do I collect and then submit the sales tax?
Quick Answer:
HSA question
Asked Friday, September 05, 2025 by AdamI've had an HSA since Feb '22. I'm over 55 and been making the maximum contribution. I've had no medical issues in this time and not spent any of the funds. I didn't realize I was supposed to leave unspent funds in the HSA account so at the end of each year I moved the accumulated funds to my general savings. Do you think I still received my tax credit for my yearly HSA savings? Is there a way to restore the 15k back into my HSA account for interest, investment, and other purposes?