TAX PREPARATION
Sole Proprietor of a Business
A sole proprietor is a person who operates a business on their own, without forming a separate legal entity.
For tax purposes, this means that business income and expenses are reported directly on your personal tax return, using Form 1040 (Schedule C).
We help you:
Organize all your sales or service income, even if you don't keep formal accounting records.
Identify deductible expenses such as supplies, home office expenses, gasoline, business vehicle maintenance, insurance, advertising, business travel, training, and more.
Advise you on how to take advantage of special deductions such as the 20% Qualified Business Income (QBI) deduction.
Calculate your self-employment tax payments and help you estimate quarterly tax payments, if applicable.
Prepare your final tax return accurately and on time.
Why is it important?
Proper preparation helps you pay less tax legally and protects you in the event of an audit. Additionally, having a solid accounting foundation is essential if you ever decide to expand, apply for a loan, or add partners.
Rental Properties
Owning rental property generates specific tax obligations.
You must report all income you receive, as well as deductible expenses related to property maintenance and management.
We help you:
Record rental income received during the tax year.
Document eligible expenses such as maintenance, repairs, utilities, property management, legal fees, insurance, local taxes, and property depreciation.
Correctly calculate the depreciation of your properties according to the IRS system to optimize your deductions year after year.
Guidance on managing passive gains or losses and their impact on your overall tax return.
Advice on situations involving property sales (capital gains) or 1031 Exchanges (exchanging properties to defer taxes).
Why is it important?
Proper tax filing allows you to take advantage of all possible deductions, significantly reduce your taxes, and build a solid tax history that supports future real estate transactions.
LLC (Limited Liability Companies)
Forming an LLC offers personal protection against business debts, but also involves complying with specific tax obligations.
Depending on your structure, the LLC can be taxed as a sole proprietorship, partnership, or corporation.
We can help you:
Determine the most convenient tax treatment (for example, whether you should file as an S-Corporation to save on self-employment taxes).
Prepare the appropriate documentation:
Schedule C for a single-member LLC.
Form 1065 for a partnership.
Form 1120 or 1120-S if the LLC has elected to be treated as a corporation.
Keep track of partner contributions, profit distributions, administrative expenses, and accounting records.
Guidance on state and local taxes applicable to your LLC.
Why is it important?
Proper management of your LLC not only protects you legally, but can also represent significant tax savings year after year and project a stronger image to banks and investors.
Corporations
We create your corporation with all the necessary documents and legal requirements, ensuring it complies with California and IRS regulations. We help you build a solid and secure foundation for your business from the start.
Includes:
Company registration in your state.
Drafting corporate bylaws.
Preparation of corporate minutes and books.
Issuance of stock and shareholder structure.
Filing Form 2553 (for S-Corp).
Obtaining an EIN.
Advice on business licenses and permits.
Benefits:
- Complete separation between your personal assets and those of the business.
- Increased financial and business credibility.
- Potential to attract investors or expand operations.
Why is it important to contact us?
The choice between an S-Corp and a C-Corp directly affects your taxes, your legal protection, and the future growth of your business. Many businesses make mistakes at this stage that later result in penalties or tax overcharges.
At Masters Tax USA, we guide you through making the right choices, complying with all laws, and maximizing benefits from day one. We explain each step in your language and ensure you start with clarity, order, and confidence.
Nonprofit Organizations
Nonprofit organizations operating under 501(c)(3) status or other categories must meet strict tax requirements to maintain their tax-exempt status.
We help you:
Correctly file Form 990, 990-EZ, or 990-N, as appropriate for your organization's size and activity.
Maintain detailed records of donations received, operating expenses, and assistance programs.
Advise you on Unrelated Business Income Tax (UBI) limits.
Help you prepare impact reports to maintain transparency with the community and potential donors.
Comply with state renewals, license registrations, and local regulations to keep your organization operating legally.
Why is it important?
Proper tax administration ensures the continuity of the organization, protects its reputation in the community, and avoids penalties that can even lead to the loss of tax-exempt status.
