Overview
Over the past 25 years, Jim Liggett CPA has been providing a broad range of services, which include accounting, audit and management consulting services, for companies in wide variety of industries. The industries include: apparel, food and beverage, real estate, software, technology services, life sciences, & import/ distribution. Furthermore Jim Liggett CPA provides thoughtful counsel to his clients, which include high net worth individuals and Joint Defense Funds, on issues such as family office, tax planning and compliance needs.
With deep taxation experience, Jim Liggett CPA serves his clients with a unique perspective, to enable them to monitor and focus on achieving their key goals. He provides them with financial and tax advisory services. Jim Liggett CPA worked for a number of companies in the industry. Most recently, he served as a partner at Liggett & Webb P.A. Now, he is a managing director at Liggett, Melzer & Joshi CPAs P.C.
Jim Liggett CPA graduated at the Drexel University, where he earned a Bachelor’s of Science Degree in Accounting/Management Information Systems.
Services
Non-Fiction
Work experience
Liggett, Melzer & Joshi CPAs P.C.
Liggett & Webb P.A.
Projects
FEDERAL INCOME TAX FOR COMPANIES IN THE UNITED STATES
From the moment you decide to open a company in the United States, you will have to face some bureaucratic issues during the process. One of them is the payment of taxes, which vary greatly according to the type of business you have and the region of the country where your company is installed.
Federal taxes are paid to the Internal Revenue Service (IRS) and state taxes are paid to the Department of Revenue (DOL) in each state. All taxes are levied on the difference between deductible income, costs and expenses.
Here, Jim Liggett CPA, a licensed public accountant share more about federal income taxes.
Federal income tax
Liggett CPA indicates that the amount that you are going to pay the IRS in federal income taxes, varies according to the profit of your company. In general, it is paid annually between the months of January and March, but in some specific cases, a proportional payment can be made quarterly.
Liggett CPA, who serves as a partner at Liggett & Webb P.A., shares the fact that C Corporations (C CORP) have double taxation. This means that a C corporation must pay a corporate income tax on its income, which is obtained as a result of offsetting income with losses, deductions, and credits. A C CORP than pays dividends to its shareholders from its after-tax income. Then the shareholders must pay personal income taxes on the dividends.
Companies that are classified as a limited liability company (LLC) do not need to pay this tax at the business level. The collection of taxes will be made at the level of the individual, after the profit (which in this category is divided 100% among the partners).
As Jim Liggett CPA indicates, in general, a C CORP will pay 21% of federal income tax at the business level. After receiving dividends, natural shareholders of C CORP will pay between 10% and 37%. This percentage also applies to members of an LLC, who pay tax on the benefits received.
Jim Liggett CPA shares the fact that until 2017 there was an exemption of approximately $4,000 for individuals. This means that the first four thousand dollars received from dividends were not taxed. However, Liggett CPA indicates that this exemption is suspended until 2025 in accordance with the “Tax Cut Jobs Act”, approved by President Donald Trump in 2017.
What is a CPA (Certified Public Accountant) And What Do They Do?
A CPA, or certified public accountant, is an accounting professional who has passed the CPA exam.
Additionally, all state education and work experience requirements have been met to become a
licensed CPA. These standards are those established by the state board of accountancy in the state
in which he or she applies.
However, Jim Liggett CPA indicates that, there is no national or universal CPA license. All 50 US
states and five other licensing jurisdictions act independently of each other. Furthermore, all of
these jurisdictions require different requirements to obtain the license. Essentially, each state board
issues its own license based on the current rules and requirements in that state.
In this way, a CPA license is much like an attorney’s license. Certified public accountants are typically
only licensed in one state, but they can become licensed in additional states based on the reciprocity
laws.
The CPA designation is the most sought after and used credential in the world of accounting and for
good reason. This credential gives you the experience, expertise, knowledge, and opportunity to do
many things in your career that a non-certified accountant wouldn’t be able to do.
CERTIFIED PUBLIC ACCOUNTANT REQUIREMENTS
The Certified Public Accountant (CPA) is a title awarded to Accountants who have passed the “Uniform Certified Public Accountant Examination” and have met certain requirements for education and prior work experience.
Jim Liggett CPA indicates that CPAs are trusted financial advisors who help individuals, businesses, and other organizations plan and achieve their financial goals. The CPA is a valuable credential that attests to a thorough understanding of accounting principles and practices, including applicable laws and regulations. All CPAs are accountants, but not all accountants are CPAs. In many states in the United States, only CPAs can perform auditing functions by issuing appropriate opinions.
REQUIREMENTS
According to Jim Liggett CPA, to obtain the degree, you must meet educational requirements and previous work experience. In addition, it is necessary to pass the aforementioned exam.
PRIOR EDUCATION
Jim Liggett CPA specifies that in the United States, the required education (including undergraduate and graduate degrees) varies by state. Almost all states require at least 150 hours of prior education, including a certain number of hours of teaching in the field of Accounting (eg New York state requires 33 hours). Many states, in addition, may also require an Ethics exam, such as Minnesota, Maryland or Arizona that require the “AICPA Professional Ethics Exam” and others such as California or Texas have their own exams (California Professional Ethics Exam or Texas Rules of Professional Conduct respectively ).
EXAM
Jim Liggett CPA claims that in the United States, in order to take the exam, you must apply for a place in the state you wish to practice and complete the number of hours of prior education required by that state. The exam consists of four parts and is considered passed if at least a 75 is obtained in each part on a scale from 0 to 99. The questions are multi-answer, simulations and written communication. The cost of the exam varies between $ 550 and $ 850 depending on the state.
The exam consists of 4 sections and lasts 2 days:
- Auditing and Attestation (AUD, 4 hours)
- Business Environment and Concepts (BEC, 3 hours)
- Financial Accounting and Reporting (FAR, 4 hours)
- Regulation (REG, 3 hours)
Outside of the United States, the exam can be taken in many countries.
EXPERIENCE
According to Jim Liggett CPA, depending on the state, between one and two years of experience in different industries, public or private sector and experience as an Accountant or Auditor may be necessary. Experience working under another CPA may also be required.
