James Liggett CPA

James Liggett CPA – Marketer

James Liggett CPA is a Certified Public Accountant, with a license to provide his services in the state of New York.

Overview

Certified public accountant, James Liggett CPA, holds a license to practice in the state of New York. He is a partner at the New York office of Liggett & Webb P.A. Before joining to this company, the highly experienced accountant, with almost 30 years of experience, held positions in a number of companies and also has co-founded two companies, MLZ Partners LLP and Outsource Partners International. James Liggett CPA has served as a partner of RBSM LLP, until 2005.


James Liggett CPA received his Bachelor of Science Degree in Accounting/Management Information Systems from the Drexel University.


Over the course of his wide career, this highly experienced professional has been providing audit and management advisory services to a wide variety of private and publicly held companies in different industries, including: software, technology services, bio-technologies, telecommunications, financial services and wholesale/distribution.


Corporate consulting, private industry, and public accounting are the areas James Liggett CPA specializes in.

Moreover, he is an active participant in private placements, corporate acquisitions, initial and secondary public offerings and reverse mergers.


As a certified public accountant, James Liggett CPA is an active member in the New Jersey State Society of Certified Public Accountants and American Institute of Certified Public Accountants.

Services
Non-Fiction
Business & Management Finance & Accounting

Work experience

Liggett & Webb P.A.

Oct, 2012 — Present

Over the course of his career, Jim Liggett CPA worked in private industry and for both regional and international accounting firms. Since October 2012 to September 2020, Jim Liggett CPA was a partner at Liggett & Webb P.A. Currently, since September 2020, he serves as a managing director at Liggett, Melzer & Joshi CPAs P.C.

Projects

What is a C CORP?

Before explaining what C CORP is, it is good to remember that there is a specific business model called S CORP. That second is available only for companies where all the shareholders are American. However, the C CORP, or C Corporation, can be formed, without problems, by foreigners. This business model has a more hierarchical structure, with shareholders, directors and directors. To work, this model needs the Articles of Incorporation.

This is a more “traditional” company mold, which follows some rules such as adoption of bylaws, frequent meetings between shareholders, presentation of annual reports and issuance of shares. In addition, it is subject to state and federal taxes.

What are the main benefits of the C CORP?
Unrestricted property
Because they have unrestricted ownership available, C CORPs are generally the best choice for companies that aim to be traded on the stock market.

Natural person does not need to declare tax
Unlike the LLC, CORP partners do not need to file tax returns in the United States. This activity is only necessary when there is a distribution of profit for the shareholders. Due to this detail, many foreigners end up opting for a Corporation when creating a company in the United States.

Credits in the name of the company
Another point that makes many foreigners decide to choose the C CORP is the fact that it allows the construction of credit in the name of the company. In the LLC, however, the credit is built through the partners, which is more difficult for those who do not reside in the US.

Access to shares
With the Corporation, you also have access to different classes of shares.

What are the disadvantages of the Corporation?
Double taxation
The main disadvantage of the C CORP is double taxation. With this modality, you pay taxes initially at the corporate level, referring to the liquid profit of the company. After that, you still pay one more time, when the profits are distributed to the shareholders.

Who should consider creating a C Corporation?
If your objective is to receive investment, the C CORP is a good alternative. Due to the fact that it has different classes of shares, it allows the issuance of preferred securities. It also works very well for homeowners who want to benefit from tax code provisions related to the exclusion of certain capital gains, or the deduction of certain losses.

What is an LLC?

LLC (Limited Liability Company) means Limited Liability Company. This business model combines some advantages of corporate structure with elements of tax association. When you create a company in the United States in the LLC model, you can partially protect your natural person from potential financial problems and lawsuits against your legal person.

What are the main benefits of the LLC?
Management flexibility
When you create an LLC in the United States, you have flexibility in managing it. In corporations, for example, there is a structure of directors who make most of the decisions, while the other employees are responsible for day-to-day work. The LLC is more versatile in this regard.

Avoid double taxation
With an LLC you don't have to go through double taxation. The company will not collect income tax and must distribute 100% of the profits to the members, who, in turn, will pay their income taxes.
Speaking of taxes, in some American states, where the natural person does not pay state income tax, such as Florida, the value collected on the earnings (which are shared at the end of the year), are lower.

You can create an LLC from your country
Like the Corporation, it is possible to open an LLC even if you are not a resident of the United States. For that, you just need a business address (it can be a virtual office or the address of your accountant).

There are no ownership restrictions
As with the C CORP, the LLC has no ownership restrictions.

Partial separation of responsibility
In some American states, such as Florida, an LLC can be formed with only one natural person. Separating, in this way, the responsibility of a company from this member.

What are the disadvantages of the LLC?
It is not the ideal model to receive investment
If your goal is to create an American company and receive investments, the LLC modality is not the best choice. In general, investors prefer the C CORP structure, which is usually the most traditional.

Mandatory profit distribution
At the end of a fiscal year, you will necessarily need to distribute the profits of the company among the members according to the participation of each one. In the C CORP that is not a rule.

How to file your taxes in the United States

If you just moved to the United States and this is your first tax return - or you are just confused - here are a couple of tips so that everything goes according to plan.
If you are relatively new to the United States and you have to file taxes, here are a couple of tips to make the process less complicated.
Remember that this 2020 the deadline to file your tax return was postponed to July 15, 2020 due to the coronavirus pandemic.

Do I have to declare?
If you are wondering whether or not you should file taxes, the answer is most likely yes. According to Dianifer Rodriguez, who works at the Financial Advisory Window of the Consulate of Mexico in Los Angeles, any person who has been in the United States for six months or more and who has received an income, must declare it before the Internal Revenue Service ( IRS, for its acronym in English).

Now, if your income comes from your home country or any other foreign country, the IRS does not have the authority to collect taxes on that income. If you receive income from a US company, you will have to.

What I need?
To do this, you will need your Social Security Number (SSN, for its acronym in English). If you don't qualify for an SSN, don't worry. In that case, the number you must process is the Taxpayer's Personal Identification Number (ITIN).

What is the difference between ITIN and SSN? The SSN is a number issued to US citizens or non-resident aliens who have work visas. The ITIN is for all those who study or work in the United States, who are identified as non-residents and who do not meet the necessary requirements to obtain an SSN.

For tax purposes, both are used to make your declaration. However, the ITIN is a number issued by the IRS and not by the Social Security Administration. To obtain it, you must fill out a W-7 form and present the required documentation. Here you will find all the information about the process.

After Tax Reform, Which Is Right for You: S Corp or C Corp?

The Tax Cuts and Jobs Act has left many of today’s businesses with big questions. Incorporation remains a hot topic, but this law is shaking things up. It’s quick to assume your company should be one or the other, but without careful consideration of the facts, your organization may end up facing financial loss, hefty tax penalties or missed tax savings.

The goal of this type of incorporation is to minimize tax burdens, but the wrong decision can be costly. In a C Corp, the company pays corporate taxes to the Internal Revenue Service. But, in an S Corp, there’s no entity tax. Rather, taxes are paid through an individual return.

The New Law Changes

The new law, which went into effect for the 2018 tax year, brought changes to both S Corp and C Corp businesses. In fact, both types of corporations benefited here. For C Corps, the tax rate was dropped from 35 percent down to just 21 percent. For an S Corp the new law provides a deduction equal to 20% of the pass-through income from the corp subject to limitations for higher-income taxpayers. At best, this reduces the effective tax rate to 29.6 percent from 37 percent. In both cases, there are specific restrictions here to know.

One thing to remember about these tax changes is that there are many components to determining which method is right for your business. Don’t make a quick judgment here. Rather, invest in some one-on-one time with your tax professional to determine the best possible scenario for your individual company. To help, consider these key areas.

S Corp and C Corp Ownership

A key component in deciding how to incorporate your business relates to ownership. In the S Corp, there is a limit of 100 shareholders within the company. These must be domestic organizations operated in the United States where all of the company’s shareholders are also living in the United States. Additionally, this structure allows for a single stock classification. As a business, you cannot offer common stocks as well as preferred shares, for example.

Comparatively, C Corps allow for fewer restrictions. There is no limit on ownership at all. There is no limit on the number of shareholders the company can have. Any small- to a medium-sized company planning an IPO or simply obtain investors outside of the traditional domestic structure will find C Corps offer far more flexibility.

Another key factor about C Corps relates to the differences within your shareholders. These corporations can issue several types of stock. As a result, it is not uncommon for some shareholder votes to be more important than others. This, too, can influence the decision you make in choosing one or the other model.

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