1. Business Accounting & Taxes
Chunyee Wong Miot CPA

2. Business Taxes for
Various Entities
Chunyee Wong Miot CPA

3. Sole Proprietor / Single member LLC
1 - Income and Expenses report on
Schedule C, attached to individual tax
return, form 1040
2 - Owner pays self employment taxes,
15.3% on net profit
3 - Owner pays income taxes, Federal, NYS
and NYC

4. C Corporation
1 – File corporation tax return, form 1120
2 – Corporation pays all income taxes,
Federal, NYS and NYC
3 – Shareholders receive salaries from
corporation
4 – Double taxation on income

5. S Corporation
1 – File corporation tax return, form 1120S
2 – Shareholders pay all income taxes,
Federal and NYS
3 – Shareholders receive salaries from
corporation
4 – No double taxation issue
5 – Shareholders might be able to use
losses to offset other income

6. LLC & LLP
1 – File partnership income tax return,
Form 1065
2 – Members pay all income taxes,
Federal and NYS
3 – Members receive draws or guaranteed
payments
4 – Members pay self employment taxes on
net income and draws

7. Business & Payroll
Taxes
 Payroll Taxes – Social Security Taxes: 6.2% for wages up to $118,500 for 2015
Medicare Taxes: 1.45% for all wages
NYS Metropolitan Commuter Transportation Tax - .34%
File Quarterly payroll tax return for IRS, NYS and MCTMT
 NEW 0.9% Medicare Surtax – Married Couples with MAGI over $250,000 and Single
with MAGI over $200,000.
 Employee Vs Independent Contractor
 Sales Taxes – 8.875% for businesses located in 5 borough
 Business income taxes and franchise fees
 Estimated Taxes

8. C Corp. Federal Income Tax
Over—
$0
50,000
75,000
100,000
335,000
10,000,000
15,000,000
18,333,333
But not over—
50,000
75,000
100,000
335,000
10,000,000
15,000,000
18,333,333
—
Tax is:
15%
$ 7,500 + 25%
13,750 + 34%
22,250 + 39%
113,900 + 34%
3,400,000 + 35%
5,150,000 + 38%
35%
Of the amount over—
-0-
$50,000
75,000
100,000
335,000
10,000,000
15,000,000
-0

9. NYS & NYC Fixed Dollar Minimum
Tax
NYS Source Receipts
$100,000 or Less
$100,000 to $250,000
$250,000 to $500,000
$500,000 to 1,000,00
$1,000,000 to 5,000,000
$5,000,000 to $25,000,000
More than $25,000,000
C Corp
$25
$70
$175
$500
$1,500
$3,500
$5,000
S Corp
$25
$50
$175
$300
$1,000
$3,000
$4,500
LLC Filing Fee
$25
$50
$175
$500
$1,500
$3,000
$4,500

10. Special business deduction for start up businesses
 Start Up Costs: $5,000 deduction in initial year
 Organization Costs: $5,000 deduction in initial year
 Home Office Deduction
 Travel Expenses – 56 cents per mile
 Meal & Entertainment – 50% Deductible

11. Business Accounting
1 – Set up an accounting system
2 – Keep all documents (no document, no
deduction)
3 – Separate business and personal affair
4 – Start up and organization costs are deductible
4 – Meal, Entertainment & Traveling Exp.:
Keep a travel log and appointment book

12. Financial Statements
• Profit and Loss
– Income & Expenses
• Balance Sheet
– Assets, Liabilities and Equity
• Cash Flow Statement
– Cash inflow and Cash outflow
• Shareholder’s Equity
– Capital plus income and loss

13. Breakeven Analysis
• Total Sales Revenue = Total Expenses (Fixed Costs
+ Variable Costs)
• Breakeven Point = Fixed Costs/(Unit Selling Price -
Variable Costs)
• or range of Fixed costs: Costs that must be paid whether
or not any units are produced. For example, rent and
insurance
• Variable costs: Costs that vary directly with the number
of products produced. For example, labor and material.
• Setting a price: Price you would charge customer

14. Example
• Example: Toy Store
• Fixed cost: Rent $1,000 and Insurance $ 500
• Variable Costs: Unit cost $5
• Price: $10 per unit
• Breakeven Point: Assume Y unit will be the breakeven
point
• Y$10 = $1500+5Y
• 5Y=$1500
• Y=300 Units
• Checking: 300x10=$1500+(300x5)
• $3000 = $3000
• Formula: 1500/(10-5) = 300 units

15. If you can’t breakeven
• find a less expensive source of supplies
• do without an employee
• save rent by working out of your home, or
• sell your product or service at a higher
price.

16. Managing Cash Flow
• Cash Flow Projection – Weekly, Monthly, Quarterly and Annually
• Compare Budget to Actual, Adjust and Improve
• Net Cash = Cash Inflow – Cash Outflow
• Cash Inflow: Capital
Loan
Sales Revenue
Line of Credit
• Cash Outflow: Monthly expenses (fixed expenses and variable
expenses)
Capital Expenditure – Equipment, Furniture & Fixture,
Renovation
Loan Payment and Interest

17. Questions
Chunyee W. Miot CPA PC
Office: 516-522-2780
Cell: 917-488-7975
Email: chunyee@chunyeeglobalcpa.com
Address: - 59 East Broadway 5th Floor
New York, NY 10002
- 626 RXR Plaza Suite 631
Uniondale NY 11556