Question

• When is a Balance Sheet required on an 1120?✱

  Select...Income over $1,000,000Income over $250,000Income over $500,000

• When is CA Franchise Tax due?✱

  Select...15-Feb15-Apr15-Mar

• What type of 1099 form should be used for most vendors?✱

  Select...1099-A1099-MAIN1099-MISC1099-NEC

• How much in taxes should be withheld for an international contractor?✱

  Select...30%25%50%0%

• Do I need to file a Form 1120 if the business had no income?✱

  Select...NoYes

• What are the four ways to extract cash from the company?✱

  Select...Loan to founderSalaryDividendAll of the above

• What does the R&D in terms of tax credit stand for?✱

  Select...Revenue & DeductionsResearch & DevelopmentResearch & DeploymentResearch Activities and Developments

Answer 1

**Answers are those words in the bold and highlighted font.

When is a Balance Sheet required in 1120?

• $250,000

Corporations need to include their balance sheet in the form 1120 only if they have income over $250,000

When is CA Franchise Tax due?

• 15-Apr

It is their fourth month's fifteenth day after the closing of the tax year. Hence, it is 15th April

What type of 1099 form should be used for most vendors?

• 1099-Misc

1099-Misc is the most widely used form for reporting among all variants of 1099.

How much in taxes should be withheld for an international contractor?

• 30%

Withholding tax applicable while payment to a foreign contractor is 30%. But, the contractor should not be a US tax resident and he should not perform any part of service while he is in the US.

Do I need to file a Form 1120 if the business had no income?

• Yes

Form 1120 should be filed by all domestic corporations even though they don't have any income.

What are the four ways to extract cash from the company?

• Loan to founder
• Salary
• Dividend
• All of the above

Loans, salaries, and dividends are the most usual ways of extracting money from a company.

What does the R&D in terms of tax credit stand for?

• Research & Development

In terms of tax credit, R&D stands for Research and Development.