-Chris Klaus
So you think you're
safe behind your "corporate veil"?
Are you sure?
The IRS Demands It, and the Attorneys Will Shred You Without It.
What is it? Read on to find out.
You decided to incorporate. The tax benefits of incorporating plus the liability protection were just too attractive to pass up, so you made the leap. Great! Maybe.
Here are 2 things you probably didn’t know:
1. The IRS requires that all active shareholders in a corporation (that’s you) be paid a “reasonable salary”. That means you need a regular paycheck just like an employee. The IRS is increasing audits of corporations who do not pay wages, and there will be heavy penalties for those who are caught.
2. If you don’t give yourself a regular paycheck and someone sues you, your liability protection from the “corporate veil” will disappear. All the suing attorney has to do is prove that you didn’t follow the rules for corporations by paying yourself wages.
Poof! There went your tax savings and your liability protection.
So what do you do?
You need to find a simple solution for paying yourself wages that will assure you of both meeting the IRS requirement for wages, and keeping your corporate liability protection intact.
Klaus Financial is the solution
We offer a simple program specifically for new corporations just like you. It's called SimplePay™. We begin the process by sending a corporate payroll specialist to your office to explain how everything works and to answer any questions you may have. Then we walk you through exactly what you have to do in order to make sure you keep your corporate protection intact.
Want to know more?
Give us a call today to schedule an appointment. We’ll be happy to visit with you at our office or yours, and show you how we can provide you with the service you need to protect yourself.
What is it? Read on to find out.
You decided to incorporate. The tax benefits of incorporating plus the liability protection were just too attractive to pass up, so you made the leap. Great! Maybe.
Here are 2 things you probably didn’t know:
1. The IRS requires that all active shareholders in a corporation (that’s you) be paid a “reasonable salary”. That means you need a regular paycheck just like an employee. The IRS is increasing audits of corporations who do not pay wages, and there will be heavy penalties for those who are caught.
2. If you don’t give yourself a regular paycheck and someone sues you, your liability protection from the “corporate veil” will disappear. All the suing attorney has to do is prove that you didn’t follow the rules for corporations by paying yourself wages.
Poof! There went your tax savings and your liability protection.
So what do you do?
You need to find a simple solution for paying yourself wages that will assure you of both meeting the IRS requirement for wages, and keeping your corporate liability protection intact.
Klaus Financial is the solution
We offer a simple program specifically for new corporations just like you. It's called SimplePay™. We begin the process by sending a corporate payroll specialist to your office to explain how everything works and to answer any questions you may have. Then we walk you through exactly what you have to do in order to make sure you keep your corporate protection intact.
Want to know more?
Give us a call today to schedule an appointment. We’ll be happy to visit with you at our office or yours, and show you how we can provide you with the service you need to protect yourself.