Understanding Taxes for Different Business Structures with Jeff Taner

Jeff Taner is a certified public accountant and Managing Partner of DWD CPAs & Advisors, a firm that offers tailored assurance, tax, and accounting services for businesses, individuals, and nonprofit organizations. Jeff has been serving DWD CPAs & Advisors for over 40 years. After graduating from Indiana University at Fort Wayne with a degree in Business Accounting, Jeff began his career in the company in 1982 and became a partner in 1996. In 2009, Jeff began his role as the Managing Partner for the company. He is a member of the American Institute of Certified Public Accountants and the Employee Benefit Plan Audit Quality Center.

 

Jeff joins us today to discuss taxation for different business organizations. He shares his background and explains why he decided to pursue a career as a certified public accountant. He differentiates S corporations from C corporations and outlines the benefits and challenges of such business structures. He describes the process of liquidating S and C corporations and offers advice to business owners who want to transition their business to family members. Jeff also shares his thoughts on setting up a business partnership and underscores what business owners should consider when making the switch between S and C corporations

 

“An LLC is like a chameleon: it can be taxed as about anything—a sole proprietorship, an S corporation, a partnership, and even as a C corporation.” - Jeff Taner

 

This week on The Owner’s Corner:

 

• What motivated Jeff to pursue a career in accounting
• The best part about working with business owners
• The different tax structures of corporations
• The difference between an S corporation and a C corporation
• Self-employment taxes on proprietorship income
• The benefits and challenges of setting up an S or C corporation
• The taxation behind liquidating S corporations and C corporations
• Stock and asset sales and what it means to recapture depreciation
• Common mistakes business owners make when selling their companies or transitioning them to family members
• Jeff’s advice to business owners who want to transition their companies to family members
• Appropriate business expenses and utilizing donor-advised funds and charitable contributions
• Record keeping and how long business owners should keep receipts and tax records

 

Our Favorite Quotes:

 

• “For the S corp, the profits that are distributed show up on the K-1 and that’s where you pay your taxes.” - Seth Whicker
• “Don’t spend your money just to reduce your tax bill. It will probably not work out to your advantage when you look at the net cash that’s left over when it’s all said and done.” - Jeff Taner
• “One of the biggest advantages you can get with health savings accounts is the tripled tax benefits.” - Seth Whicker

 

Connect with Patrick Galvin:

 

• DWD CPAs & Advisors
• DWD CPAs & Advisors on LinkedIn
• Patrick Galvin on LinkedIn
• Email: [email protected]

 

About SYM Financial and The Owner’s Corner Podcast

 

The Owner’s Corner is a show for business owners. In each episode, host and financial planner Seth Whicker sits down with business owners and the professionals that serve them to talk about what it takes to build a business. Our guests come from many industries and walks of life to share their biggest wins, mistakes made along the way, and their thinking about the all-important exit planning.

 

Email Seth at [email protected] with questions, comments, and to schedule a one-on-one conversation. 

 

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