Can Form 1120 Schedule M 3 Eliminated 2019-2024

Welcome, this is John Dillard with his CPA PC. Today, I want to talk to you a little bit about the filing of your corporate income taxes. Currently in Georgia, about half of all the new corporations being set up are LLCs, while the other half are regular corporations. There is a small difference between non-profits, limited liability partnerships, and C corporations. Over the years, I have often teased clients that there are two types of clients: those that are S corporations and those that are about to become regular corporations. Many people feel a false sense of security when setting up their initial LLC because of the ease of incorporation and lack of reporting requirements that a regular S corporation has. While these two things are true, I would suggest that they are minor. For example, it typically takes an attorney an hour or less to set up an LLP or LLC, compared to an S corporation. However, since you're not going to do it yourself and the attorney will handle it for you, I would suggest deferring that decision to them. Another reporting requirement that people often overlook is the annual board of directors and officers shareholder minutes meeting. This is required for an S corporation but not for an LLC. I like to joke with people at my shareholder directors and officers showroom in its mating; I don't argue myself. The actual meeting tends to go fairly quickly, usually taking 10 to 15 minutes. Both an S corporation and an LLC are taxed differently, so it's prudent to sit down with a CPA before getting incorporated. However, if you have already set up an LLC, tax law allows you to file a timely 2553 with the election to be a small business corporation. This is typically done by March 15 for the...