Schultz & Associates, CPA
Located at 496 W. Ann Arbor Trail Since 2004
Michigan CPA Firm Providing Accounting, Bookkeeping, and Tax Preparation for Michigan Businesses and Individuals
About Schultz & Associates, CPA, PLC – Michigan CPA Firm
Schultz & Associates, CPA, Certified Public Accountants was formed in June of 2003. We are a Michigan CPA Firm. Its intent at the time was to provide accounting and tax accounting services to Western Wayne County Michigan. That included Plymouth, Canton, Livonia, Westland and Garden City. The firm continued to grow and began servicing other surrounding areas that include, Ann Arbor, Northville, Belleville, Farmington and the rest of Metropolitan Detroit Michigan. Today we provide services to clients throughout the State of Michigan and some surrounding states.
Plymouth Tax Preparation Firm
Schultz & Associates, CPA was established in Plymouth Michigan in 2003. At its core are long time Plymouth residents. Some of our staff have grown up in Plymouth. That includes going to the Plymouth-Canton Public Schools. Some of us have gone to the local private schools. Other staff have sent their kids to local schools and seen their kids grow up in Plymouth. Our staff have combined years of experience of over 75 years. While we may not be the oldest firm in town we are a firm strongly rooted in Plymouth.
Our Promise for Tax Preparation
Our Firm is positioned to best help individual’s with their Plymouth tax preparation needs. We work with small business and many individuals. Our fees structure is a testament to that. When you call us at 734-354-2380 ask for Jeff. He will spend a few minutes on the phone reviewing your preparation needs. He will give you a fixed fee price quote during the conversation. We will stand by that quote. We guarantee our fee will be competitive with any other prepares out there. We also promise not to extend your return. We will return your calls or emails promptly. And as long as you can provide us with 100% of your data prior to March 15, then we promise to have your returns complete in 7 business days. We can do this because we are a top firm in this segment and we are properly staff to meet your needs. We know we can do this because we have a solid track record of do this.
Schultz & Associates, CPA, a Michigan CPA Firm is currently structured to allow us to service clients with multiple levels of complexity. That includes businesses, individual, trusts, estate and non-profit organizations. We will provide the service you need that fits your budget. So if you have a complex business or a simple business we can help. If you have a complex income tax return or a simple individual income tax return, we can help.
Tax Accounting and Income Tax Preparation
The 2015 filing season is upon us. As you receive your various income tax documents, be sure to keep them in one spot. You will be receiving various forms. Those forms may include your W-2, 1099MISC, 1099B, 1099DIV, 1099INT, Form K-1, 1099R, 1095A and Form 1098 to name a few. This is also the time of the year to total up your donations and contributions for the year. If you own a house you will need to calculate what amount of real estate taxes you paid last year. If you are a small business owner or your employer does not reimburse you, then you will have to review and tally up your mileage log. These are the basics. If you would prefer a more detailed checklist, click this: 2015 Schultz Tax Organizer.
Some of our staff at Schultz & Associates, CPA have been working with QuickBooks Pro for nearly 20 years. Twenty years of QuickBooks Pro will pretty much take you all the way back to version one. Although QuickBooks Pro has evolved over the past two decades, it is fundamentally the same. On this website and on youtube you can find several videos that were produced by our firm. These videos are intended to help business owners get through some basic functions. However, our team can assist you with the most complicated aspects of QuickBooks Pro, QuickBooks Premier, QuickBooks Enterprise Edition or the QuickBooks Pro Point of Sale. Click to see our QuickBooks Videos.
Below is our latest Michigan CPA Firm QuickBooks Video That can Also be found on Youtube
Bookkeeping and Accounting for Business
We find that many of our clients do not have a formal accounting background. And often they do not have the resources to hire a person to dedicate their entire day towards accounting and bookkeeping functions. We try to assess the needs of each client. That includes assessing their accounting and bookkeeping knowledge, the complexity of the business, the amount of time the client can afford to devote to accounting, third party reporting requirements, and the frequency and timeliness information is needed in order to make sound business decisions. Once we know these answers, we implement a program that will allow us to fill in the gaps and address your needs. We can easily take what looks like a mess to you and turn it into usable information.
Business Start Up
Often when entrepreneurs come to us, they first ask about entity selection. We take the client through a series of questions to determine the type of entity that would be appropriate for their needs. We take into consideration that the business may grow, and need flexibility. We acknowledge that setting up different types of entities can result in more paperwork than others. We will walk through the difference between an S Corp, C Corp, Sole Prop, and even a partnership. We will explain how the LLC can choose how it wants to be taxed, and evolve as your business grows. We will explain how the LLC can convert from being taxed as a Sole Proprietorship into an S Corporation. We make sure you understand that although an S Corporation may be more beneficial from a tax standpoint, it could create accounting fees that exceed that benefit.
Schultz & Associates, CPA, PLC a Michigan CPA Firm can make sure that you have timely financial information. Most of our clients have their monthly financial information current and updated within 15 days after the end of the month. It is important for our clients to have timely information so that they can make timely business decisions. Internally we also use this information to monitor your tax situation. We are proactive so that you are paying your taxes in the year the money is earned.
Our clients can receive their financials in numerous ways. We can issue a compilation report with or without note disclosures, or a review or an audit. We can also make sure the clients accounting software is up to date so that they only receive internal financial statements.
Real Estate Tax Accounting
Real Estate taxation is a very complex specialty. Some of the Schultz & Associates, CPAs have more than 20 years of experience when it comes to real estate. There are reasons why we separate real estate into separate entities. It is important to separate real estate that is being developed, from rental holdings. It is important to keep your brokerage separate as well. Most of this separation is so a future 1031 exchange is not tainted.
When it comes to taxes, those who participate in real estate activities tend to deal with many complicated tax issues. There are numerous considerations necessary while dealing with your real estate holdings. Not all tax professionals have proper tax knowledge when it comes to real estate. It is important to have conversations with your accountant to be sure that they are capable of dealing with your specific issue. On a basic level, there needs to be an understanding of material participation, activity participation and the qualification required to be classified as a real estate professional for tax purposes. There needs to be an understanding of what tax elections should be made and when. There must be an understanding of what can be done so not to taint the opportunity for capital gain treatment, as well as how to not lose an opportunity to qualify for a tax free exchange of property (1031 exchange). And equally important is the proper application of At-Risk rules. If your accountant cannot properly explain how these things are being applied to your tax return then you are likely not receiving proper advise.
IRS Tax Help and Relief
Every year we hear from hundreds of taxpayers with different issues and stories. We hear from taxpayers who have not filed old tax returns. We hear that the returns are filed but they owe taxes. Taxpayers call and tell us they are being harassed by the IRS. We hear from taxpayer’s who have received a CP-2000 and do not know how to move forward. Every year we help hundreds of clients solve their IRS tax problems. We have helped clients settle their IRS problems including:
• We can help filing delinquent tax returns. We will request IRS transcripts and let them know that we are working to resolve the issue.
• We can help with an IRS wage garnishment. We will submit the proper forms and negotiate an installment agreement. We will request a letter that you can submit to your employer. The letter will let your employer know that the garnishment is not necessary any longer.
• Notice of intent to levy can be difficult. A quick reaction is necessary. With the proper paperwork the IRS will stop the levy.
• IRS Offer in Comprises can be difficult. They do not work most of the time. If you have an income then they would prefer to see you in an installment agreement.
• Most IRS installment agreements run for five years, although there are some 7 year options. These type of agreements help to remove liens, levies and garnishments. They pay the debt in full plus the penalty and interest. They act like a bank loan would act.
• The IRS does have a partial pay installment agreement option. The IRS partial pay agreement runs ten years. Whatever the ending balance at the end of ten years is, is eligible to have removed. Taxes that are older than ten years are beyond the IRS statute of limitations. You still have to request the removal of taxes that are beyond the statute of limitations.
• We have seen taxpayers who have had the IRS get an SRF or Substitute For Return. This is where the IRS will take the information that they received and calculate a return for you. They will do this if you do not file a return. It is still necessary to file a return it the IRS does a Substitute For Return. The SFR is often incorrect. The SRF does not have all of your information. Most importantly they do not have your deductible expenses or the cost basis of any stock sales.
• The IRS also have the option of being listed as “currently uncollectible” . The IRS requires taxpayers to submit financial information proving they do not have the wherewithal to make payment on their tax debt. Usually you must submit Form 433 in order to qualify.
• The IRS does have a “Fresh Start” program. Alan Thick is correct but the price tag for this representation should not cost a third of the tax owed. It is best to work with a local firm that you can sit face to face with. Additionally, if you have been assigned a local Revenue Agent there is a high probability that there is a local professional that has worked directly with that agent on a similar matter in the past.
• If your returns have been filed and your tax liability is under $25,000, setting up an installment agreement is not a tedious process for a professional familiar with working on IRS matters. Often agreements of this dollar amount require little to no paperwork. Usually a five year installment agreement can be established quite quickly.
What is a Limited Liability Company
A Limited Liability Company is a way to organize your business. It is far more simple to set up than a corporation. Generally the LLC requires the filing of articles of organization with a state, an operating agreement, and a federal ID number. Once those three things are complete you can open a bank account and you are off to the races.
What Tax Form to File for a Limited Liability Company
When the LLC became a legal form of organizing a business, the IRS decided at that time not to create a new tax return or tax form for it. Instead, the IRS opted for a check the box solution. Basically they decided to allow the LLC members to decide how they want to be taxed, and to this date the rules have not changed. The member or members can decide for themselves how they wish to be taxed.
Sole Member LLC
If an individual decides to set up an LLC and be the single member of that company, then they have three choices of how they can choose to be taxed. They can be taxed as a sole proprietor, an S Corporation, or a C Corporation. Receptively they would file: Schedule C, Form 1120S, or Form 1120.
Multi Member LLC
When an LLC has two or more members then the company has three choices of how it can be taxed. The LLC can choose to file as a partnership using Form 1065. The LLC can also elect to be taxed as an S Corporation and File Form 1120S. Finally, the LLC could also choose to be taxed as a C Corporation and file Form 1120.
Changing How the LLC is Taxed
Once the members of the LLC choose how they wish to be taxed it can be changed. The IRS does not allow a company to switch year after year. The IRS does however allow a change from time to time. A single member LLC who now wishes to be taxed as an S Corporation can do so. Of course this must be done using proper forms and making timely elections.
The Magical LLC
And that is why the LLC is magical. It gives the member(s) the flexibility to choose how it wants to be taxed. It requires less paperwork and formalities than a corporation. And it allows you to change the way the LLC is taxed as the entity changes.