FAQ

When it comes to your money, you have questions. Everyone does.
Here are just some of the ones we get on a regular basis. Call us today to find out more detailed answers for your specific inquiries.

  • What is a corporate letter of good standing?

    A letter of good standing is issued by the incorporating state and declares that the corporation has filed all of its returns, has paid its taxes, and can conduct business in good standing in the state.Call us if your corporation requires such a letter.

  • If my business conducts business in more than one state, what administrative procedures are required?

    Your business does not have to incorporate in multiple states, but your corporation must register in each state to conduct business. We’ll be glad to show you what is required to register.

  • Should my business file as an S-corporation, C-corporation an LLC, a partnership, or another type of entity?

    This is an important question with a complex answer. The right decision is based on the type of business you have, the number of owners, the entity type of owners (corporation, individual, trust), how the business profit will be paid to the owners, and, eventually, how the business will dissolve or continue. Set up a meeting with us, and, based on your responses, we will review your options and recommend the appropriate selection for your business.

  • Do I need to file payroll?

    If you have workers that fit the IRS’s description of employees, then the answer is yes. If your workers are set up differently, the answer is possibly, based on your individual circumstances. Review your workers’ circumstances with us, and we will provide you with your options.

  • What is the difference between an independent contractor and an employee?

    The IRS has 15 criteria that are used to determine the distinction between an independent contractor and an employee. Making this distinction correctly and documenting this distinction is the difference between a costly lesson and good night’s sleep. Call us to discuss your best options for tackling such a decision.

  • Do I need workers’ compensation insurance?

    Most states require workers’ compensation for all employees of businesses and independent contractors who are not covered with their own insurance, as well as subcontractors who are not covered with their own insurance. Also, please keep in mind that the insurance premium is based on the type of job the worker performs. Call us for additional information.

  • Is my business subject to sales tax?

    The type of business, the type of sales, and the type of product sold all dictate whether or not your transactions are subject to sales tax. New York State, for example, has a publication detailing what specifically is subject to sales tax. But this 50+-page publication only summarizes a very complex decision-making process when determining what transactions are subject to sales tax. We are, and always have been, very successful in the defense of sales tax audits. If you have more questions, we have the answers that will help. Let us assist you with your next sales tax decision.

  • What do I do if I get audited?

    Retain representation, and do not speak to the auditor about the specifics of the audit. Trying to handle your own audit generally results in less-than-optimum results and may actually increase your audit exposure depending on your responses. Call JRH immediately if you receive an audit notice.