Category: S-Corps & Business Structure

Tactical. Practical. Efficient. At Fortitude Tax & Accounting, these three words guide nearly everything we do. As business owners ourselves, we understand that time, cash flow, and attention are limited resources. Our clients don’t need more reports, more meetings, or more complexity. They need clear guidance, practical recommendations, and enough time to take meaningful action….

Do LLCs Get 1099s? How to Tell When an LLC Does (and Doesn’t) Need a 1099 LLCs are one of the biggest sources of confusion for business owners preparing 1099s. Many people assume that if a vendor’s name includes “LLC,” they’re automatically exempt from reporting — but that’s not how the IRS works. Here’s the…

1099-K Confusion Solved: How PayPal, Venmo & Stripe Affect Your 1099 Obligations Payment apps have transformed how small businesses send and receive money — but they’ve also created enormous confusion about who must file which 1099 form, and when a 1099-K appears instead of a 1099-NEC. If your business uses PayPal, Venmo, Stripe, Square, Etsy,…

The IRS is Cracking Down: Is Your Business Ready? The IRS is ramping up enforcement in 2024, and business owners, S Corporation shareholders, and high-income earners are in the crosshairs. With increased funding, advanced AI detection tools, and a focus on reducing the tax gap, IRS audits in 2024 are expected to rise. If you…

A common question we hear at Fortitude Tax & Accounting is, “I’m buying a new vehicle—should I buy it through my business?” As a savvy business owner, you’re always looking for strategies to reduce your tax liability and optimize your financial position. Buying a vehicle through your business can offer substantial tax advantages, but it’s…

Running a small service business from home offers not just convenience, but also a significant opportunity to reduce your tax liability through the home office deduction. However, to fully unlock these savings, it’s crucial to understand the IRS guidelines and how to properly calculate and document your expenses. This guide will walk you through what…

If you’re an S Corporation owner, understanding the concept of “reasonable compensation” is critical to avoid potential IRS audits and penalties. The IRS requires that shareholder-employees of S Corporations pay themselves a reasonable salary, and failure to comply can result in back taxes, penalties, and interest. What is Reasonable Compensation? Reasonable compensation refers to the…

Unlocking the benefits of an S Corporation: Key Strategies to Avoid Risks and Ensure Compliance Electing S Corporation status can be an excellent strategy for small businesses to reduce their tax burden, particularly by avoiding double taxation. However, to fully benefit from this structure, business owners need to be vigilant about maintaining compliance with IRS…

Is It Already Time to Think About 2024 Tax Planning? Here’s Why You Should Start Planning Now! Believe it or not, we’re already more than halfway through 2024! As we approach the end of the year, it’s time to start thinking about tax planning—because before you know it, Tax Time will be here. Why Do…

It’s no secret that electing S Corporation status can be a smart way to save money on taxes. By passing income directly to shareholders, an S Corporation can help you avoid the double taxation faced by traditional C Corporations. However, this election isn’t without its risks. Before you make the decision, there are some critical…