Corporate consulting is a process of helping corporate to improve their performance through the analysis of their existing problems and development of future plans. This consulting process involves implementation of best practices in the corporate, coaching skills, implementing latest technology, analytical techniques and strategy development. A consultant being an outsider sees things with completely different aspect and this different perspective of the consultants help them to come with unique solutions or even come up with different strategy for the growth of the corporate. These consultants bring formal methodologies to suggest more effective ways of performing tasks that is healthy for the organizations.   

Corporate consulting services provide necessary advice to help senior management to enhance the effectiveness of the corporate strategy and operation by accessing their business requirements and reviewing their business functions, plans and directions. The corporate consultants comprises of an expert team who hold expertise in conducting a market research in order to empower their clients with a significant competitive advantage. The service of these consultants helps the corporate to strengthen and maintain their position in their respective domain. These consultants are well expert in their work and they can even predict the result of a particular move made by the corporate. Therefore with their advice and help, corporate can confidently grow in their respective area.  

The through professionals involved in corporate consulting also help the top management of the corporate to take crucial business decisions. There are several occasions when one small decision can affect the business to a great extent either in the positive direction or in the negative direction. These consultants provide their advice on their extensive research and collecting relevant data from the authentic source along with demographic and social statistics that will help the management in making crucial decisions. Corporate consulting services can be a huge support for corporate. These consultants help to achieve objectives with an assurance of right decision in every major aspect of the corporate.

Year End Tax Planning Help-Your Corporation

A greeting to you all my friends, it is time to write another year end tax planning article. What shall we discuss? What can I tell you all that will offer some sort of financial revelation helping with both your income tax and strategic financial management?

Well, times are difficult but some of you might still be in need of some practical tax planning. How about a C corporation taxpayer (a corporation that is not a subchapter S and pays tax as though operating as an individual) that has a sizeable profit, a father-son ownership team, and reports for tax purposes on the cash basis method of accounting. Suppose that Daddy has aspirations of retiring in the not too distant future. Try this one on for size. For the current year, why not allow the Company to pay tax on $75,000 of income. By leaving this amount of taxable income inside of the C Corporation, the 15% and 25% tax brackets will be exploited. The father –son owners have a much higher marginal tax rate facing them-35%. By doing it this way, we save money within the corporate structure allowing it to stockpile additional capital to manage operations going forward. The earnings exceeding the $75,000 of desired taxable income will be paid out to father-son in the form of bonus or other compensation. In addition, the Company will make a profit sharing plan contribution on their behalves. This is a great tactic for this Company’s year end tax planning as the lower corporate rates are used for maximum benefit and the owners (father and son) get tax sheltered income in the form of retirement plan contributions. The business now has working capital as we approach another year of operations.

As for a strategic financial consideration, if Father is considering retirement in the not too distant future, why not consider gifting the stock to qualified small business trust, where sonny is the beneficiary, in January (the next year of operations). The Company would then make a corresponding S corporation election (due by March 15th for calendar year corporations-use form 2553). A gift tax return will have to be filed by father and a valuation will need to be performed on the gifted shares. The valuation of these shares will consider the time frame of the gift to the trust and its earnings potential. If father will strip most or all of the earnings and the gift term is say ten years (the recognition period for the S corporation, when it is converted from a C corporation, in order to avoid liquidation tax), the value of the gift will be significantly reduced thus preserving the estate tax exemption for other assets in his estate. The gift tax return is filed on form 709 and is due by the filing of Father’s personal income tax return.

For those of you more advanced, when converting a C corporation to an S corporation, income is recognized at the corporate level to the extent of unreported receivables and payables, the 481(a) adjustment, because of using the cash basis method of accounting for tax reporting purposes. Remember, a major trait of the S corporation involves the flow-through of profits to the shareholders, thus avoiding corporate level tax. Regarding cash basis C corporations converted to S corporations, the would-be taxable income of the entity would have to be eliminated to avoid a corporate level tax. This would be true for the entire ten year recognition period. Because it would be the goal of the corporation to eliminate taxable income, in order to reduce the exposure to gift tax consequences, we have effectively killed two birds with one stone. There will be no corporate level tax; the corporation can continue to use the cash basis method of accounting, and Father will have a limited exposure to estate and gift taxes. Wait a minute, that’s three birds with one stone. Nice.        

Ron Piner, CPA

Host of “Better Business”

Saturday mornings at 10ET

On WBIS AM 1190

www.wbis1190.com

taxguy9@hotmail.com

Corporate clothing has many advantages like it shows a unity of appearance, make employees look decent, shows good discipline etc. after knowing these advantages of the corporate clothing no firm can wait in implementing this. So the concept of corporate clothing popularizing day by day. Along with the concept of corporate clothing the new concept known as promotional clothing is also at the peak.

 What promotional clothing is? Getting the name of your company embroided on the corporate clothing is known as promotional clothing. If corporate clothing is combined with promotional clothing standard of corporate clothing will be more raised. In promotional clothing the embroidery of company’s name is done on the corporate clothing. Sometimes company’s logo is also embroided   along with the name of company on corporate clothing this is called logo embroidery.

 Promotional embroidery is done for many other things besides corporate clothing those all are under mentioned:-

T-Shirts Polo Shirt  Sweatshirts Ladies wear Children’s wear Outerwear Corporate wear Work wear/Hi-Vis Catering Sportswear Accessories Thermals & Accessories Uneek Clothing Range

The promotional clothing is gaining importance everywhere as in corporate clothing. Small kid gets attracted towards the product because of promotional embroidery done over the product. So now its more clear that the promotional clothing does not restricted to corporate clothing only. Its now talk of the town. The clothes with promotional embroidery sells like hot cakes that’s why it has become the taste of corporate sector too. It’s the combination of both i.e. creativity and marketing strategy.

 Ladies has very much craze of the things like promotional embroidery. So promotional embroidery has its own prominence in each and every sector. Promotional embroidery helps a lot in the promotion of company’s logo.

Because as now its known that it is not only restricted to corporate clothing its all the more gaining more importance everywhere because of its variant features like its cost effective, makes contract embroidery easy, good in  quality and a better way of advertisement etc.

 If you really want, you can take all the above advantages then contact only century clothing. We will provide you the services of promotional embroidery as well as corporate clothing at cheap and best rate without sacrificing the quality. We have an experience of more than 7 years and have earned a very good name. we have all the modern techniques of production. Our whole process of production is done in house so you will never get complaints regarding the quality and completion of work.

 We have also the facility of placing orders on line, so its very easy for us to reach our customers. By this facility the time and efforts of our customer are also saved. So if you have any enquiry about promotional embroidery and contract clothing or you want to place the order kindly let us know by visiting us at :-

www.centuryclothing.net

The corporate veil can be pierced if a party is tricked or misled into dealing with the corporation rather than an individual. Whenever the corporation does correspondence with a third party, the officers and directors of that company need to make it clear that they are acting on behalf of the corporation and not themselves individually. All the documents need to clearly be entered into on behalf of the corporation otherwise there may be a conflict that could arise that would pierce the corporate veil.

If the corporation is set up to never make a profit or always be insolvent it is considered too “thinly” capitalized. This could be when the corporation is formed without sufficient capital to meet potential liabilities and debts. This often occurs when an individual or group of people uses a corporation as a form of shield from liabilities instead of a legitimate business.

When the corporation fails to follow corporate formalities where the corporation is located, it can be pierced. A few of the corporate formalities are meetings, minutes, stock ledger. If the corporate entity fails to do some of these duties the judge can rule that it is not a proper corporation.

The biggest mistake small corporations usually make is not keeping separate accounts for the corporation. If an individual moves funds from their bank account into the corporate bank account, and vise versa then the court will disregard the corporate entity.

If the corporation is engaged in illegal enterprise where it is ruled that the corporation was setup as a sole means for those involved to partake in an illegal activity, the corporate veil can be pierced. For instance, a corporation will not be tried for murder. The individuals responsible will be tried for it. The same thing can be applied for all kinds of cases such as drug trafficking, etc.

While it is possible for the corporate veil to be pierced, if you take the proper precautions when setting up your corporation you will help to protect your own personal assets. A few of the steps to protecting your personal assets are quite simple and some are even common sense. The important thing is that you take care when operating a business, and you get sound legal advice before doing anything questionable.