96797 WAIPAHU, OAHU S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS - Benefits of S Corporation Status for C Corporations and LLCs in WAIPAHU, OAHU - Call: 808-468-8041
- Diamond Head Tax Group OAHU BLOGGER
- Mar 31
- 10 min read
Updated: Apr 1
Say Goodbye to the "Double Taxation" Drawback of Regular C-Corporations by Forming an S-Corporation
Small Businesses in 96797 WAIPAHU, OAHU can benefit immensely by Forming S-Corporations, which offers numerous potential tax benefits such as increased tax savings by letting income flow directly to shareholders
Turn to the 96797 WAIPAHU, OAHU S-Corporation Form N-35 Income Tax Return Filing Advisors of Diamond Head Tax Group OAHU, we will help you with the process of Forming an S-Corporation and handling the paperwork necessary for Filing Income Tax Returns for your business with its new status as an S-Corporation.
For 96797 WAIPAHU, OAHU-based Limited Liability Company (LLC) and C-Corporation owners, choosing an S-Corporation Status is an ideal way to get substantial self-employment tax savings and other benefits.
Convert your Oahu Business into an S-Corporation with Diamond Head Tax Group OAHU 96797 WAIPAHU, OAHU S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS serving Honolulu, Waikīkī, Kaimukī and Kailua, Oahu, Hawaii.
96797 WAIPAHU, OAHU S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS
Convert Your Business into an S-Corporation for Added Tax Savings
Serving Businesses in Honolulu, Waikīkī, Kaimukī and Kailua, and all of OAHU
S-Corporations are known as pass-through entities: THEY PAY NO CORPORATE TAXES
Instead, they pay their shareholders who are responsible for the taxes due
Due to the unique status of S-Corporations in Hawaii under Subchapter S of the Internal Revenue Code, forming an S-Corporation in 96797 WAIPAHU, OAHU can unlock tax savings for business owners such as avoiding the double taxation faced by C-Corporations and allowing income to flow directly to shareholders.
Diamond Head Tax Group OAHU 96797 WAIPAHU, OAHU S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS for Small Businesses will help you take full advantage of the potential tax efficiencies offered by forming an S-Corporation.
96797 WAIPAHU, OAHU S-Corporation Filing Requirements:
For the IRS to accept your application for forming an S-Corporation you must meet the Internal Revenue Code filing requirements. To qualify for S-Corporation status, an entity must:
Be a domestic LLC or corporation
Have no more than 100 shareholders or members (“shareholders” is the term for owners of a corporation, while “members” is the term for owners of an LLC)
Have only allowable shareholders or members, which includes individuals, certain trusts, and estates. The shareholders/members may not be partnerships, corporations, or non-resident aliens. A nonresident alien is an alien who has not passed the green card test or the substantial presence test.
Not be an ineligible corporation, such as certain financial institutions, insurance companies, and domestic international sales corporations
Only have one class of stock
If your business meets all these requirements then you're on your way to Forming an 96797 WAIPAHU, OAHU S-Corporation
Hawaii S-Corporation Taxes
For S-Corporations, businesses don't usually pay income tax at the federal level, only at the individual business owner's level. Hawaii State Income Taxes have their own distinct specifications.
The State of Hawaii treats S-Corporations the same way the Federal Government treats Federal Income Taxes. Hawaii S-Corporations need to file a Hawaii S Corporation Income Tax Return (Form N-35).
HAWAII S-Corporation Income Tax Return Form N-35 Information
A corporation must file Form N-35 if it has elected, by filing federal Form 2553, to be treated as an S corporation for federal purposes, the IRS has accepted the election, and the election remains in effect.
S Corporations which are financial corporations subject to tax under Chapter 241, Hawaii Revised Statutes (HRS), may not file Form N-35, but must file Form F-1, Franchise Tax Return.
Link to official form info: Hawaii N-35
Advantages of Forming an S-Corporation for 96797 WAIPAHU, OAHU LLCs and Corporations
Advantages of S-Corporation Status for 96797 WAIPAHU, OAHU LLCs
The advantages of filing as an S-Corporation for an LLC differ from those for C corporations. A traditional LLC already has pass-through taxation, so the benefits of S-Corporation election for an LLC come from federal self-employment tax:
Self-Employment Taxes
The members of a standard LLC are considered self-employed, this means they profit by receiving their share of profits from the LLC, but they can’t be employed by the LLC. Being self-employed means paying self-employment taxes (such as Social Security and Medicare) on all profits they receive from the LLC. This is double the taxes they pay when working for someone else because their employer would pay half of them.
Dividing Salary and Profits
When the members elect S-Corporation status, they have the option to be compensated in two ways, by receiving their share of the profits and by being employed by the LLC. Once they do that, they only pay taxes for Social Security and Medicare on their salary and not the profits they receive.
The savings could add up to a lot. Plus, money paid out as salary is a tax-deductible expense for the business.
Reasonable Compensation
One important caveat to this is that the IRS expects LLC members to pay themselves a “reasonable salary” as an employee of the LLC.
As to the specifics of what counts as "reasonable salary" or compensation, while the terms aren’t totally defined, the IRS seems to consider “reasonable” to be something similar to what others in the same field are earning for similar work.
Advantages of S-Corporation Status for 96797 WAIPAHU, OAHU C-Corporations
For a C-Corporation, filing as an S-Corporation benefits include:
Pass-Through Taxation
“Double taxation” is a big disadvantage for traditional corporations. When the corporation makes money, the IRS taxes those profits on the business level. And when those profits are distributed to the shareholders, they’re taxed a second time on the shareholders’ personal tax returns.
But when a C-Corporation qualifies to be an S-Corporation those profits are only taxed at the individual level, the business itself isn’t taxed on them. This is called “pass-through taxation.”
S-Corporation Can Write Off Losses
The business’s profits pass through to the owners of an S-Corporation, and so do the company’s losses. Unlike the shareholders of a C-Corporation, S-Corporation owners can write off the business’s losses on their personal income statements.
Qualified Business Income Deduction
Some S-Corporation owners may be able to deduct up to 20% of their qualified business income under the 2017 Tax Cuts and Jobs Act. This deduction isn’t available to C-Corporation shareholders.
Qualified business income (QBI) is basically your share of the company’s profits.
In the IRS' definition:
“QBI is the net amount of qualified items of income, gain, deduction and loss from any qualified trade or business, including income from partnerships, S corporations, sole proprietorships, and certain trusts.”
Diamond Head Tax Group OAHU and our team of 96797 WAIPAHU, OAHU S-Corporation Form N-35 Income Tax Return Filing Advisors will help you utilize the S-Corporation business structure to make a significant positive impact on your taxes.
You will go through tax season with less expenses, saving money while maintaining legal compliance, meeting deadlines and avoiding mistakes in the OAHU Business Tax Filing process.
The Diamond Head Tax Group OAHU team is well-versed in business tax and accounting and can work with any business including partnerships, S-Corporations, C-Corporations, LLCs, corporations, and non-profits.
Honolulu, Oahu
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Prosperous HONOLULU BUSINESSES can prosper even more with OAHU S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS at Diamond Head Tax Group OAHU
Get self-employment tax savings and numerous other benefits by turning your Honolulu LLC or C-Corporation into an S-Corporation with Diamond Head Tax Group OAHU's 96701 HONOLULU S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS for Small Businesses.
The capital of Hawaii and the gateway to the island chain, Honolulu is a cosmopolitan capital city where visitors and locals will find everything from historic landmarks to fine dining to world-class shopping. A global destination, Honolulu is a major hub for business, finance, hospitality with world renowned tourist traps and diverse local scenery characterized by a mix of various Asian, Western, and Pacific cultures, reflected in its diverse demography, cuisine, and traditions that showcase Honolulu's global reach and empower its economy. For Honolulu small businesses and entrepreneurs, maximizing tax deductions is a priority, one that Diamond Head Tax Group OAHU can fulfill through strategies such as registering as S-Corporations, available to domestic Honolulu LLCs and C-Corporations that want a new business structure that will positively benefit their finances.
Waikīkī, Oahu
96815
Increase your Qualified Business Income (QBI) with the 96815 Waikīkī, Oahu S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS of Diamond Head Tax Group OAHU
Starting a business in Waikīkī? Let Diamond Head Tax Group OAHU Tax Experts guide you through the process and even take full advantage of the potential tax efficiencies offered by registering as an S-Corporation with the services of our 96815 Waikīkī, Oahu S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS.
Waikīkī is a Honolulu neighborhood in the island of Oahu near the iconic Diamond Head volcanic tuff cone known for its historic hiking trail, stunning coastal views and scenic heights. Its destinations include Kapiʻolani Park, Fort DeRussy, Kahanamoku Lagoon, Kūhiō Beach Park, and Ala Wai Harbor. The bustling economy of Waikīkī generates almost half of Hawaii's visitor revenue and businesses in this thriving locale can increase their savings even more by turning to Diamond Head Tax Group OAHU's team of S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS in 96815 Waikīkī, OAHU, making use of S-Corporation benefits such as avoiding the "Double Taxation" problem faced by regular C-Corporations.
Kaimukī, Oahu
96816
Kaimukī businesses from big corporations to small to medium enterprises (SMEs) can benefit from Diamond Head Tax Group OAHU's 96816 Kaimukī, Oahu S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS
By working with Diamond Head Tax Group OAHU and creating a 96816 Kaimukī, Oahu S-Corporation the savings could add up to a lot for your business and the money paid out as salary is a tax-deductible expense for your business, so consult our team of 96816 Kaimukī, Oahu S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS for Small Businesses to find the best tax solution that works for you.
Kaimukī is a residential neighborhood in Honolulu that is thriving with coffee shops, old-school diners and quirky indie stores, giving the peaceful and calming neighborhood a reputation for offering a lot of accessibility to visitors and locals alike with a host of establishments on Waialae Avenue, such as shops selling vintage Aloha shirts, bento boxes and artisan gelato, alongside trendy jewelry boutiques and hip brunch spots. Busy stalls at the KCC Saturday Farmers’ Market are full of bright tropical flowers, locally harvested sea salt, sea asparagus and kimchi fried rice. In short Kaimukī boasts a bustling business community that is served by Diamond Head Tax Group OAHU that can help them become even more prosperous with services such as 96816 Kaimukī, Oahu S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS for Small Businesses, LLCs and C-Corporations looking for Oahu Tax Solutions.
Kailua, Oahu 96734
Avoid the "Double Taxation" problem of regular corporations by turning to the expertise of 96734 KAILUA, OAHU S-CORPORATION FORM N-35 M INCOME TAX RETURN FILING ADVISORS at Diamond Head Tax Group OAHU
By working with Diamond Head Tax Group OAHU Tax Experts 96734 Kailua businesses can register as S-Corporations for its benefits like pass-through taxation, limited liability, and potential tax savings for owners, while also providing a structure that can enhance credibility and attract investors in Kailua drawn by the benefits of the S-Corporation business structure.
Kailua is located on the east coast of Oahu with long stretches of sand on Kailua Bay and gentle waves making it a favorite destination with a cozy residential community. Kailua means "two seas" or "two currents," it is named after either the two lagoons located on the island or the two currents that run through Kailua and make it an ideal spot for windsurfing, kayaking and other water sports beloved by locals and tourists alike enjoying the idyllic homes and luxurious resorts by the seashore. 96734 Kailua Businesses can turn to the expert services of Diamond Head Tax Group OAHU including LLCs and C-Corporations that can increase tax savings and income by registering as 96734 KAILUA S-Corporations served by the S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS of Diamond Head Tax Group OAHU.
Waipahu, Oahu
96797
Waipahu Business Owners based in the Waipo Business Center can get lower overall tax liability with the 96797 WAIPAHU, OAHU S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS at Diamond Head Tax Group OAHU
Diamond Head Tax Group OAHU and our team of 96797 WAIPAHU, OAHU S-CORPORATION FORM N-35 INCOME TAX RETURN FILING ADVISORS will help Waipahu Business Owners keep more of their earnings and decrease the burden of taxes on their businesses by registering as S-Corporations in which business losses can be deducted on the shareholders' personal income tax returns, which can be beneficial during the startup phase.
A thriving neighborhood that had humble beginnings as a sugarcane plantation, Waipahu is a testament to the prosperity of Oahu, offering residents a mix of modern conveniences and old-world charm, while luring visitors with a variety of attractions, dining options, and outdoor leisure activities benefiting from Waipahu's proximity to bustling Honolulu and Waikīkī but with enough space to maintain the comfort of a more laid-back atmosphere. Waipahu businesses including LLCs and C-Corporations situated in districts like the Waipio Business Center on Moaniani Street in Waipio can turn to Diamond Head Tax Group OAHU for 96797 WAIPAHU, OAHU S-CORPORATION FORM N-35 INCOME TAX RETURN FILING Advisory Services to explore the process of creating S-Corporations for its numerous advantages including letting their income flow directly to shareholders.
Why Choose DIAMOND HEAD TAX GROUP CPA Services HONOLULU?
As Honolulu continues to expand, we continue to be the trusted local Oahu CPA firm. We are Located in the heart of Honolulu, and are focused on delivering professional and quality CPA Services to the small businesses and residents in Honolulu, Oahu.
We are proud to offer our tax and accounting firm services that help with the financial and business needs of our clients. Whether those needs are personal or business, we are here to provide you the financial guidance you seek.
When you partner with Diamond Head Tax Group, you’ll receive rates that are competitive and reasonable, flexibility that works around your schedule, and excellent client services.
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