Dental Accounting Advice - C-Corporation Tax Issue

I'm a corporation and cash basis. How do I wind up yearly with a profit and have to pay federal corporation taxes as well as state? Last year I had to borrow 40k to fund pension plan to create a 40k deduction to offset 42k profit and avoid a 35% tax which would be about 15k.

ITS CRAZY!

Any suggestions going forward?

Should I go to self employment and can corporate entity which today is not a must?

What I find crazy is how you can NOT know how you end up with profit and NOT know how you can plan for it.

Unless you double as a CPA and can handle all the nuances of proper planning, why not seek out advice to either explain it to you or get help planning for it.

You must be a C-Corp since you have a corporate tax liability to worry about and there are still plenty of C-Corps out there. There are several options for you. Still, maybe the C-Corp is your best choice.

So without knowing you and your specific situation, I don't see how I can give you any advice on how to move forward. You need very specific advice based upon your own situation.

Tim

This post first appeared on Dentaltown.

Send your questions to Tim Lott, CPA, CVA at tlott@dentalcpas.com

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