ENROLLED AGENT EXAM - PART 2:
BUSINESS
ho(UNITho1)hoBusinesshoandhoRequirementsho-hoans--✔✔...
SolohoProprietorshipho-hoans--
✔✔can'thobehopassedhotohoahonewhoowner,homusthobehosoldho
qualifiedhojointhoventureho-hoonlyhomarriedhocoupleshobusinessho
-filehoseparatehoScheduleshoChoandhoseparatehoSchedulehoSE
Statutoryhoemployees,hodisregardedhoentitieshoalsohomusthofilehoSchedulehoC
Partnershipsho-hoans--✔✔-musthohavehoatholeastho1hogeneralhopartner
jointhoundertakinghotohosharehoexpenseshoishonothoahopartnership
Fromho1065hoamdhoK-1hotohoeachhopartnerho(nothoWho2)
limitedhopartnerhomayhonothosignhoreturnhoorhorepresenthobeforehoIRS
LimitedhoLiabilityhoPartnershipho(LLC)hopartnerhoonlyhoathoriskhoforhohishointeresthoinhopart
nershiphoassets
ChoCorporationsho-hoans--✔✔Fromho1120
boardhoofhodirectorshooversighthoofhocompanyhoandhohashoshareholders
ShoCorporationsho-hoans--✔✔Shocorphomust
-behodomestic
-shareholdersho(mayhonothobehopartnerships,hocorporations,hononhoresidenthoaliens)
-nohomorehothanho100hoshareholders
-onehoclasshoofhostockho(votinghoandhononhoarehosamehostock)
-nothobehoineligiblehotypehocorporation
LimitedhoLiabilityhoCompaniesho(LLC)ho-hoans--✔✔taxedhoashopartnership
corporationhoprotectionhoandhoavoidshodoublehotaxation
,PersonalhoServicehoCorporationsho(PSC)ho-hoans--✔✔taxedhoathoflathoratehoofho35%
CLOSELYhoHELDhoCORP
-canhooffsethopassiveholosseshowithhoanyhoactivehoincome
PERSONALhoSERVICEhoCORPhocan'thooffsethopassiveholosseshowithhoanyhoactivehoinco
me
whenhoatholeastho95%hoofhostockhoheldhobyhoownershoperforminghopersonalhoservices.
FarmershoandhoFishermenho-hoans--✔✔mayhobehopartnershiphoorhocorporation
Tax-ExempthoOrgsho(nonhoprofithoentities)ho-hoans--
✔✔Formho1023hoapplicationhoforhoregognitionhoofhoexemption
byhodefaulthononhoprofit:hochurches,hosynagogues,homosques,hotemples
Formho990hofilehoannually
EntityhoClassificationhoElectionhoRulesho-hoans--
✔✔canhochoosehotohobehoclassifiedhoforhotaxhopurposes
nothobeforeho75hodayshoorhoafterho12homonths.
electionhocannothobehochangedhoforho5yrsho(60homonths)
EmployerhoIdentificationhoNumberho(EIN)ho-hoans--✔✔RequesthoforhoEINhoFromhoSS-4
musthohavehoif:
havehoemployees
excisehotax
alcohol,hotobacco,hofirearms
Ifhosolohonohoemployees,honothorequiredhoEIN
BusinesshoRecordkeepingho-hoans--✔✔Laterhoofho3hoyearshowhenhoduehoorhofiledho
payrollhoemploymenthoinfoho4hoyears
IncomehoStatement
BalancehoSheet
BusinesshoReportinghoRequirementsho-hoans--✔✔Formho8300ho-
hocashhotransactionho$10,000hoorhomoreho(reportho15thhodayhoafterhodayhoofhotransaction)
W-4hoemployee'showithholdinghoallowancehocertificate
W-2howageshoandhotaxhostatementho(ifhofilehooverho250homusthofilehoelectronically)
Formho1099hocontractors,hoselfhoemployedhoifhopaidho$600hoorhomoreho(nohoneedhoforhoo
nehoifhopersonalhopayments,hopainthomyhohouse)
EmploymenthoTaxeshoandhoSelf-EmploymenthoTaxho-hoans--✔✔Formho944
SSho6.2%hoMedicareho1.45%
AdditionalhoMedicarehoTaxho0.9%
, ifhonothofileho944,homusthofileho941hoeachhoquarterhoregardlesshoifhopaidhowageshoorhonot
OnlyhoOptions:hobyhoMailhoorhoE-file
TrusthoFundhoRecoveryhoPenaltyho(TFRP)ho-hoans--
✔✔penaltyho100%hocanhoapplyhotohoeveryonehowhohoishoresponsible.ho
responsiblehoandhowillfullyhofails
FederalhoUnemploymentho(FUTA)hoTaxho-hoans--
✔✔6%hoonhofirstho$7,000hoofhoeachhoemployee
canholaterhogethocredithoofho5.4%hoonhoFormho940hosohotruehotaxhoisho0.6%
EmployeehoandhoWorkerhoClassificationho-hoans--
✔✔Test:hobehaviorhocontrol,hofinancialhocontrol,hotypehoofhorelationship
employee
statutoryhoemployeeho-
holifehoinsurancehosalespeople,hotravelinghosalespeople,hodirectorhoofhocorps,hocommissio
nedhotruckhodrivers,
statutoryhononhoemployeeho-hodirecthosaleshoandholicensedhorealhoestatehoagents
independenthocontractor
EmployinghoFamilyhoMembersho-hoans--
✔✔corp,hoestate,hopartnershiphowithhoonehoparenthoahopartner
-childhopaymenthosubjecthotohoallhotaxes
Solohoorhoeachhoishopartnerhoinhopartnership
underho18hoonlyhoincomehotaxhowithheld
underho21honohoFUTAhotaxhowithheld
(UNITho2)hoAccountinghoPeriodshoandhoMethodsho-hoans--✔✔...
TaxhoYearho-hoans--
✔✔shorthotaxhoyearholesshothanho12homonths.hotaxpayershodeathhomarkshoendhoofhofinalh
otaxhoyear
RequiredhoTaxhoYearho-hoans--
✔✔usedhobyhopartnerships,hoShocorpshoandhoPSC.ho50%hoorhomorehoofhopartnershomusth
ousehothathorequiredhotaxhoyear
Sectionho444hoElectionho-hoans--✔✔requesthotohousehootherhothanhorequiredhotaxhoyear
FilinghoDuehoDateshoforhoEntitiesho-hoans--
✔✔CORPhomarchho15,ho15thhodayhoofhothirdhomonth
BUSINESS
ho(UNITho1)hoBusinesshoandhoRequirementsho-hoans--✔✔...
SolohoProprietorshipho-hoans--
✔✔can'thobehopassedhotohoahonewhoowner,homusthobehosoldho
qualifiedhojointhoventureho-hoonlyhomarriedhocoupleshobusinessho
-filehoseparatehoScheduleshoChoandhoseparatehoSchedulehoSE
Statutoryhoemployees,hodisregardedhoentitieshoalsohomusthofilehoSchedulehoC
Partnershipsho-hoans--✔✔-musthohavehoatholeastho1hogeneralhopartner
jointhoundertakinghotohosharehoexpenseshoishonothoahopartnership
Fromho1065hoamdhoK-1hotohoeachhopartnerho(nothoWho2)
limitedhopartnerhomayhonothosignhoreturnhoorhorepresenthobeforehoIRS
LimitedhoLiabilityhoPartnershipho(LLC)hopartnerhoonlyhoathoriskhoforhohishointeresthoinhopart
nershiphoassets
ChoCorporationsho-hoans--✔✔Fromho1120
boardhoofhodirectorshooversighthoofhocompanyhoandhohashoshareholders
ShoCorporationsho-hoans--✔✔Shocorphomust
-behodomestic
-shareholdersho(mayhonothobehopartnerships,hocorporations,hononhoresidenthoaliens)
-nohomorehothanho100hoshareholders
-onehoclasshoofhostockho(votinghoandhononhoarehosamehostock)
-nothobehoineligiblehotypehocorporation
LimitedhoLiabilityhoCompaniesho(LLC)ho-hoans--✔✔taxedhoashopartnership
corporationhoprotectionhoandhoavoidshodoublehotaxation
,PersonalhoServicehoCorporationsho(PSC)ho-hoans--✔✔taxedhoathoflathoratehoofho35%
CLOSELYhoHELDhoCORP
-canhooffsethopassiveholosseshowithhoanyhoactivehoincome
PERSONALhoSERVICEhoCORPhocan'thooffsethopassiveholosseshowithhoanyhoactivehoinco
me
whenhoatholeastho95%hoofhostockhoheldhobyhoownershoperforminghopersonalhoservices.
FarmershoandhoFishermenho-hoans--✔✔mayhobehopartnershiphoorhocorporation
Tax-ExempthoOrgsho(nonhoprofithoentities)ho-hoans--
✔✔Formho1023hoapplicationhoforhoregognitionhoofhoexemption
byhodefaulthononhoprofit:hochurches,hosynagogues,homosques,hotemples
Formho990hofilehoannually
EntityhoClassificationhoElectionhoRulesho-hoans--
✔✔canhochoosehotohobehoclassifiedhoforhotaxhopurposes
nothobeforeho75hodayshoorhoafterho12homonths.
electionhocannothobehochangedhoforho5yrsho(60homonths)
EmployerhoIdentificationhoNumberho(EIN)ho-hoans--✔✔RequesthoforhoEINhoFromhoSS-4
musthohavehoif:
havehoemployees
excisehotax
alcohol,hotobacco,hofirearms
Ifhosolohonohoemployees,honothorequiredhoEIN
BusinesshoRecordkeepingho-hoans--✔✔Laterhoofho3hoyearshowhenhoduehoorhofiledho
payrollhoemploymenthoinfoho4hoyears
IncomehoStatement
BalancehoSheet
BusinesshoReportinghoRequirementsho-hoans--✔✔Formho8300ho-
hocashhotransactionho$10,000hoorhomoreho(reportho15thhodayhoafterhodayhoofhotransaction)
W-4hoemployee'showithholdinghoallowancehocertificate
W-2howageshoandhotaxhostatementho(ifhofilehooverho250homusthofilehoelectronically)
Formho1099hocontractors,hoselfhoemployedhoifhopaidho$600hoorhomoreho(nohoneedhoforhoo
nehoifhopersonalhopayments,hopainthomyhohouse)
EmploymenthoTaxeshoandhoSelf-EmploymenthoTaxho-hoans--✔✔Formho944
SSho6.2%hoMedicareho1.45%
AdditionalhoMedicarehoTaxho0.9%
, ifhonothofileho944,homusthofileho941hoeachhoquarterhoregardlesshoifhopaidhowageshoorhonot
OnlyhoOptions:hobyhoMailhoorhoE-file
TrusthoFundhoRecoveryhoPenaltyho(TFRP)ho-hoans--
✔✔penaltyho100%hocanhoapplyhotohoeveryonehowhohoishoresponsible.ho
responsiblehoandhowillfullyhofails
FederalhoUnemploymentho(FUTA)hoTaxho-hoans--
✔✔6%hoonhofirstho$7,000hoofhoeachhoemployee
canholaterhogethocredithoofho5.4%hoonhoFormho940hosohotruehotaxhoisho0.6%
EmployeehoandhoWorkerhoClassificationho-hoans--
✔✔Test:hobehaviorhocontrol,hofinancialhocontrol,hotypehoofhorelationship
employee
statutoryhoemployeeho-
holifehoinsurancehosalespeople,hotravelinghosalespeople,hodirectorhoofhocorps,hocommissio
nedhotruckhodrivers,
statutoryhononhoemployeeho-hodirecthosaleshoandholicensedhorealhoestatehoagents
independenthocontractor
EmployinghoFamilyhoMembersho-hoans--
✔✔corp,hoestate,hopartnershiphowithhoonehoparenthoahopartner
-childhopaymenthosubjecthotohoallhotaxes
Solohoorhoeachhoishopartnerhoinhopartnership
underho18hoonlyhoincomehotaxhowithheld
underho21honohoFUTAhotaxhowithheld
(UNITho2)hoAccountinghoPeriodshoandhoMethodsho-hoans--✔✔...
TaxhoYearho-hoans--
✔✔shorthotaxhoyearholesshothanho12homonths.hotaxpayershodeathhomarkshoendhoofhofinalh
otaxhoyear
RequiredhoTaxhoYearho-hoans--
✔✔usedhobyhopartnerships,hoShocorpshoandhoPSC.ho50%hoorhomorehoofhopartnershomusth
ousehothathorequiredhotaxhoyear
Sectionho444hoElectionho-hoans--✔✔requesthotohousehootherhothanhorequiredhotaxhoyear
FilinghoDuehoDateshoforhoEntitiesho-hoans--
✔✔CORPhomarchho15,ho15thhodayhoofhothirdhomonth
