Small C & S Corporations (Series 200: Investors and Business)

Owners of small C and S corporations will learn how to emerge from IRS suspicions of improper personal gains when conducting businesses as private entities. This book examines the characteristics of a bona fide corporation with annual gross receipts under $5 million. These businesses, known as small C or S corporations, can play a vital role in the enhancement of personal wealth by those owners who are prudent and visionary-provided such owners observe the tax laws. Topics covered in this book include accounting consistency and methods; the omens of undercapitalisation; the importance of balance sheets and C vs. S treatment of retained earnings; expenditures that are expressly not deductible; and 'tax basis' establishments in each share of stock held. Featured in detail are explanations of sections of the tax code and rules of the Securities and Exchange Commission.