Kyle Kincaid Home Page

Contact Information

Kyle Kincaid, CPA, CGMA

Office and Mailing:
10715 Silverdale Way NW, Suite 205B
Silverdale, WA 98383

Phone:  360-710-7793
Fax:  360-824-7139

Email:  
Website:  www.kylekincaid.com

Hours: Monday-Saturday, schedule is by appointment only. Call 360-710-7793.

Map and driving directions:

Do you operate as an S-corporation?

One of the most common problems I see is how owners are paying themselves in an S-corp. Sometimes these problems were created or made worse by their tax preparers, and expose owners to unnecessary future liability. Shareholder/officers who are active in the business should receive a salary. The IRS has won a number of court decisions where salaries have been imputed to officers who received none or an inadequate compensation for services performed. And they are targeting S-corporations for more audits in this area. But how much salary should you pay? The first consideration is that it should be a reasonable amount. For example, Fred is the sole shareholder of Madison Inc. Fred works at the business full-time, has an MBA and is a CPA. Before Fred's salary, Madison, a service business, had profits of $350,000. Fred takes a salary of just $25,000 per year. Clearly, in the absence of other factors, that's far too low. Significant distributions to the shareholder (including the payment of personal expenses), and little need to retain capital in the business, would weigh against the corporation. You don't want an audit just because of a clearly inadequate salary.

Testimonial

"I'm so glad we found you, you're the best and we truly mean that sincerely."
~ Curt & Julie Devoir, Owners, CJ Property Services, Poulsbo, WA

Services

We are a full-service CPA firm offering bookkeeping, computer consulting, financial statements, tax planning and tax preparation in addition to specializing in part-time controller/CFO services to small businesses. Please visit our Services page for a complete list of all that we can provide.
CPA