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NORTON NEWSLETTER
THE REAL ESTATE TAX PRO ™
NortonAccountingServices.com 985-690-4498 Info@NortonAccountingServices.com SEPTEMBER 2024
EASE OF MIND • AVAILABILITY • FLEXIBILITY • INDIVIDUAL APPROACH • EXPERIENCE • TAX SAVINGS OPPORTUNITIES
Disregarded Entities, Partnerships, and Taxes TAX BENEFITS OF LLCS
I am commonly asked about whether you are better off forming a corporation or a Limited Liability Company (LLC) for your business. The answer is simple — especially for small businesses — you should form an LLC, not a corporation. The reason is that corporations pay tax on their income, and their owners pay taxes again when they distribute profits (this is called “double taxation”), so your corporation will have to elect to be taxed as an S-Corp immediately to avoid double taxation. In contrast, an LLC is considered a “pass-through” entity, which means income passes through to its owners, who pay tax on that income once on their personal income tax returns. If you really want your business to be taxed as a corporation, the IRS allows LLCs to make that election. So, LLCS are the most flexible type of entity for tax purposes, and they provide limited liability protection to their members if managed correctly. Here are three key concepts that will help you understand the benefits of LLCs. Disregarded Entities LLCs can be confusing to some people, especially when it comes to disregarded entities. Essentially, all owners of an LLC are referred to as members. These members can include individuals, corporations, or even other LLCs. Depending on how it is structured, the IRS will consider an LLC as either a partnership or a Sole proprietorship. If an LLC has just one member, it is known as a single-member LLC and is treated as a “disregarded entity” come tax season. A disregarded entity is an LLC that does not have to file separately from its owner. In other words, it allows the owners of LLCs to avoid the complexity of tax by simply filing their LLC taxes with their own personal income tax return. Partnerships and Multi-Member LLCs If an LLC has at least two members, it is classified as a partnership for federal income tax purposes. Once an LLC has more than one member, however, it is no longer considered a disregarded entity. So, a partnership tax return must be filed for the LLC if it has more than one member rather than including it on a personal tax return. The exception to this is for community property states. In community property states, if a husband and wife are partners in an LLC, they can elect to disregard their partnership for tax purposes.
LLCs Electing to Be Taxed as S-Corps I mentioned earlier that an LLC can elect to be taxed as a corporation. The IRS also allows an LLC to be taxed as an S-Corp, even a single- member LLC. An S-Corp is also a pass-through entity, so the income is taxed on the owner’s tax return. Electing to be taxed as an S-Corp provides tax planning opportunities and allows the owner to split the LLC’s income into “wages” and “profits”. You don’t pay self- employment taxes on profits, which can save a significant amount in taxes. So, S-Corp owners must pay themselves a “reasonable” salary, which cannot be zero. S-Corps require additional paperwork for a payroll that partnerships or sole proprietorships may not have, so some planning is involved before making that election. NOTE: Owning rental properties in a corporation has negative tax consequences, so generally, LLCs that hold rentals should not be taxed as a corporation or S-Corp.
I would like to stress that this article is not tax advice; it is just information to help you understand how LLCs file taxes. If you’d like tax advice for your entity structure, please schedule a meeting with me.
–Bob Norton
985-690-4498 • 1
COCA-COLA MAGIC Your Favorite Soft Drink’s Hidden Potential
Delicious Defrosting If you live in a particularly icy environment — such as a polar bear- riddled iceberg — then you may want to try out this unorthodox Coca-Cola application for yourself. Apparently, pouring Coca-Cola on your windshield can help you wipe away the ice much more easily than just using water. Coca-Clean While some may be perturbed after spilling a sugary drink on themselves, others spill Coca-Cola on themselves on purpose. This is because Coca-Cola has been heralded for its ability to remove grease stains from clothing. Apparently, for the toughest grease stains, some recommend soaking the affected area in Coca-Cola for a half-hour before tossing it in the washing machine. Coca-Cola is also touted as an agent to remove rust, clean baking equipment, whiten a toilet bowl, or wipe away oil stains from a household floor. The rumors regarding Coca-Cola’s cleaning properties are so pervasive that the company even addressed them on its website. According to the company, although “a small amount of edible acid is present in Coca-Cola,” they do not recommend using it as a household cleaner. Curling Hair Admittedly, this use has less to do with the soda itself and more with the can, but TikToker Jonathan K. Monroe made a splash with his more than 2.6 million followers when he reportedly curled his hair using nothing but an aluminum Coca-Cola can. According to the now-viral trend, the method involves putting strands of your hair into the can, swirling it around, then blowing hot air over and into the can with a blow dryer before pulling out perfectly curled hair. According to writer Angela Trakoshis from Allure, she was skeptical that the method would yield positive results. However, after trying it herself, she was shocked: “The can of Coke created not just any curl but the perfect curl.” You heard it here first — ditch your curling iron, buy a 12-pack of canned Coca-Cola, drink it, and save the cans, stat!
Dr. John Pemberton invented Coca-Cola back in 1886. In its first year, he served about nine Coca-Cola drinks every day. Its popularity has increased significantly since then — and not just among caffeine-addled polar bears in the Arctic, despite what commercials may have you believe. It is now the top soft drink in the world, with a brand valued at nearly $100 billion. However, despite its delicious taste, Coca-Cola has been used for various purposes since its inception, as myths and realizations about its properties came to fruition. Here are four wonderful alternate uses for everyone’s favorite soda! Meat Marinade If you have ever had a glass of Coca-Cola and thought, “I want to marinate something in this,” then you are not alone. The world has experimented with the fizzy drink as a marinade for many years. The internet is a great place to find these marinated meat recipes, from Coca-Cola marinated rib-eye steaks to Coca-Cola braised pork tacos. Southern Living magazine
even has its own recipe for a Coca-Cola BBQ sauce you can whip together in just 25 minutes!
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K-9 SONYA’S DISTINGUISHED SERVICE IS RECOGNIZED A national hero from the U.S. Coast Guard had a lot to wag her tail about this year! K-9 Sonya, an 11-year-old Belgian Malinois, was honored with the Animals in War & Peace Distinguished Service Medal this March for her extraordinary heroism over the past nine years. The hardworking dog has a long list of achievements and continues to serve the Coast Guard proudly. Sonya was one of 18 explosive detection canines in the Coast Guard, assigned to two duty stations, the Maritime Safety and Security Team in Seattle and the Maritime Security Response Team West in San Diego. Alongside her human partner, Sonya’s primary job was to detect and detract acts of terrorism in the U.S. She has performed more than 5,000 hours of explosives detection work and more than 8,500 vehicle sweeps. The pooch’s expertise has helped other local law enforcement agencies handle bomb threats in residential and federal buildings, and she has worked with the FBI and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. One of the highlights of her career was when she found a firearm that was ditched during a high-speed pursuit that was later linked to multiple homicides. Her work ultimately helped to identify the suspect. Sonya has also had the opportunity to attend major events in the country, protecting guests and fans. Over her career, she worked security for four Super Bowls, the Rose Bowl, the U.S. Track and Field Olympics, U.S. World Athletics, PGA tournaments, and many other mass public gatherings. Sonya has assisted in security for four U.S. presidents, high-ranking dignitaries, and world leaders. A Tail of Courage
Sonya retired in 2023 and was diagnosed with a very aggressive form of cancer, but she didn’t let it stop her from continuing to serve. Sonya worked as the Coast Guard’s first-ever canine recruiter until her passing in April. In a heartfelt message online, Sonya’s handler, Chief Petty Officer James Grant, paid tribute to his partner. “Sonya girl, you were a fighter until the end,” he wrote. “Your loyalty and love will be forever remembered. K9 Sonya, you were the greatest, most loving dog I have ever met.”
Sonya’s brave legacy lives on and continues to inspire.
Tasty Turkey Meatloaf This turkey meatloaf is packed with flavor and protein, perfect for a family dinner or meal prep!
TAKE A BREAK
Ingredients
• 1 lb ground turkey • 1 onion, diced
• 2 tbsp ketchup • 2 tbsp Worcestershire sauce • 2 eggs • 2 tbsp chopped fresh parsley • Salt and pepper, to taste
• 2 cloves garlic, minced • 1/2 cup bread crumbs • 1/2 cup grated Parmesan cheese
Directions
1. Preheat oven to 375 F and line a baking dish with parchment paper. 2. In a large bowl, combine turkey, onion, garlic, bread crumbs, Parmesan cheese, ketchup, Worcestershire sauce, eggs, parsley, salt, and pepper. 3. Form the mixture into a loaf shape and place it in the baking dish. 4. Bake for 45 minutes or until the internal temperature reaches 165 F. 5. Let the meatloaf rest for 10 minutes before slicing.
Abundant Apples Cookout Crunchy
Fall Golden Grandparents Harvest
Labor Maple Sports Windy
985-690-4498 • 3
Norton Accounting Services, LLC
THE REAL ESTATE TAX PRO ™
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
NortonAccountingServices.com 985-690-4498 Info@NortonAccountingServices.com
1527 Gause Blvd. Ste. 132 Slidell, LA 70458
INSIDE 1 How LLCs Help With Taxes
2
Unexpected Uses for Coca-Cola The Belgian Malinois Who Protected America
3
Tasty Turkey Meatloaf
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Simplify Your Supplement Routine
Vitamins Made Easy
The Essential Trio for Any Lifestyle It’s daunting to determine which vitamins and supplements to take when every doctor, dietitian, and online health guru has a different list of must-haves — and they’re usually pretty long. Looking for somewhere to get started? Here are three supplements almost everyone can benefit from!
Vitamin D Everyone knows you need calcium for strong and healthy bones — but without vitamin D, you’re missing out on critical benefits. Vitamin D promotes calcium absorption in the body, so many milk brands fortify their products with vitamin D. It’s essential to prevent
A Multivitamin Stress, health changes, and even prescription medications in our everyday lives can sap our energy and deplete crucial vitamins. Generally, the best way to replenish what we’ve lost is through various fruits and vegetables. Still, with busy schedules, diminished appetites, or other obstacles, that’s not always possible. A multivitamin is a great starter supplement, as it can help fill various nutritional gaps. Omega 3 Fatty Acids These specific types of fat are found most abundantly in fish, nuts, seeds, and eggs. They facilitate cellular function and are essential for the heart, brain, and eyes. Unfortunately, our bodies can’t produce enough fatty acids independently, so we must add more through our diets or supplements. Benefits include a lowered risk of developing heart disease, blood clots, certain types of cancer, dementia, Alzheimer’s, age-related macular degeneration, and more.
osteoporosis. Additionally, vitamin D is critical for cell growth and reducing inflammation, and it’s easy to obtain from sunlight. Unfortunately, many people are deficient in this one. Why? Our modern lives keep many of us indoors. If you’re looking to start a vitamin regimen but all the different health advice on the web overwhelms you, take a step back and start simply. Remember, you can always add more later. Keeping it simple initially will increase your likelihood of sticking to your plan! Try starting with these three supplements, see how they make you feel, and then take it from there.
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