Personal & Business Tax Services in Northern Michigan
JD McClure & Company, is an Electronic Return Originator (ERO). We utilize “state of the art” tax software which enables us to prepare and electronically file all types of Federal and State tax related returns.
Proficient tax preparation and planning can help you to minimize your current and future tax liability. We can help you manage both your business and your personal tax issues, including understanding how upcoming business opportunities impact your tax status and vice versa.
Not all tax planning opportunities are readily apparent. By having us on your team, you are more likely to benefit from those opportunities. We recognize how the latest federal and state tax legislation and other developments affect you and your business and we are continuously identifying new ways to reduce federal and state tax liabilities.
As the tax law changes it is important to stay up to date, that is why we continue our education and take IRS certified courses.
Allow us to use our professional knowledge and expertise to get you the full refund you are entitled to at an economical rate.
A sole proprietor is someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation. Income and expenses are reported on the Schedule C which flows to Form 1040 of the individual.
A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business. Partners are not employees and should not be issued a Form W-2. The partnership must furnish copies of Schedule K-1 (Form 1065) to the partners by the date Form 1065 is required to be filed, including extensions.
In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation’s capital stock. A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. A corporation can also take special deductions. For federal income tax purposes, a C corporation is recognized as a separate taxpaying entity. A corporation conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders. The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. This creates a double tax. The corporation does not get a tax deduction when it distributes dividends to shareholders. Shareholders cannot deduct any loss of the corporation.
S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income at the entity level.
A trust or a decedent’s estate is a separate legal entity for federal tax purposes. A decedent’s estate comes into existence at the time of death of an individual. A trust may be created during an individual’s life (inter vivos) or at the time of his or her death under a will (testamentary). If the trust instrument contains certain provisions, then the person creating the trust (the grantor) is treated as the owner of the trust’s assets. Such a trust is a grantor type trust.