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Shamsey Oloko January 25, 2017 Business Expenses, Corporate Tax, Limited Liability Companies, Ordinary and Necessary Expenses, Partnership Tax, S Corporations, Taxable Income

Tax Treatment of Business Entities Part 1: Introduction

When starting a business enterprise, one of the most significant and important decisions to make is the choice regarding the legal form to use in operating the business. The alternatives include sole proprietorship, partnership, corporation (C corporation), S corporation, and…

Shamsey Oloko January 23, 2017 Self-Employment Tax

Is Income Of An LLC Member Subject To Self-Employment Tax?

Unlike corporations which are treated as separate tax entities, the IRS and the Tax Code treat LLCs as “pass-through” entities. Thus, an LLC or “Limited Liability Company” is a business structure that combines the pass-through taxation of a partnership or…

Shamsey Oloko September 14, 2016 Nonqualified Deferred Income, Self-Employment Tax

Christine C. Peterson, et al. v. Commissioner of IRS – Retirement Payments May Be Deferred Compensation

In a case of first impression, the Eleventh Circuit Court of Appeals held that payments from a Mary Kay retirement program to one of its retired salespersons were earnings subject to self-employment tax. This holding was based upon the fact…