Accountants + Business Advisors

Owner & Family Compensation and Tax Planning

Compensation and Tax Planning

The compensation paid to owners and executives can take many forms, including:

  • Wages
  • Retirement plans
  • Fringe benefits
  • Non-cash compensation such as stock options
  • Deferred compensation, including “phantom stock” plans and “Top Hat” plans

And, depending on the type of entity which is paying the compensation (C corporation, S corporation, LLC, Partnership), compensation structures can vary widely, with vastly different tax results.

For family members working in the business, proper structuring of compensation programs can result in significant income and payroll tax savings for the family.

We can assist in implementing a comprehensive executive/owner and family compensation program that can minimize taxes and maximize take-home pay.

Foreign Financial Reporting

With the rapid expansion of U.S. commerce to other parts of the world, it has become increasingly important to be well advised regarding foreign financial activity.

Whether you are simply selling into another country or perhaps you have a salesman or a branch office in another country, there are numerous income reporting requirements (e.g., “SubPart F Income”) and information reporting requirements (e.g., Foreign Bank Account Report) that are tax land-mines, with potentially significant penalties for failure to comply. The IRS has identified this as a priority audit area and the penalties for failure to comply can be significant.

We can assist you to make sure that your foreign activity/operations are properly structured and that you remain in compliance with all reporting requirements.