Frequently Asked Questions

  • What's the difference between an LLC and S-Corp for taxes?

    An LLC offers flexibility and simplicity, while an S-Corp can save thousands through payroll tax reduction strategies if you have significant profit. The right choice depends on your income level, business structure, and long term goals. At Navesink Tax & Advisory LLC, we help entrepreneurs select the entity that minimizes tax and maximizes operational ease from day one.

  • When should I switch my LLC to an S-Corp?

    Most businesses benefit from S-Corp election when net income consistently exceeds $60,000 to $80,000 annually, allowing meaningful payroll tax savings. Timing matters—elections must align with IRS deadlines and your fiscal year. Navesink Tax & Advisory LLC evaluates your earnings, growth trajectory, and compliance capacity to recommend the optimal transition point.

  • How does year round tax planning reduce what I owe?

    Proactive planning lets you time income, maximize deductions, and leverage credits before year end, rather than reacting after the fact. We review quarterly estimated taxes, assess business expenses, and adjust strategies as your situation changes. This approach often saves clients thousands compared to filing only at deadline.

  • What happens if I get an IRS notice?

    IRS notices range from simple balance inquiries to audit requests, and prompt, accurate responses are critical to avoid penalties or escalation. At Navesink Tax & Advisory LLC, we review the notice, gather documentation, and communicate directly with the IRS on your behalf. Most issues resolve quickly with professional representation.

  • Do I need to file taxes in multiple states?

    Yes, if you earn income, own property, or maintain a business presence in more than one state, you may owe state taxes in each jurisdiction. Multi state compliance involves understanding residency rules, apportionment, and reciprocity agreements. We help residents and business owners navigate complex multi state filings and avoid double taxation.

  • How do I set up payroll and sales tax correctly?

    Proper setup requires registering with state and federal agencies, selecting payroll schedules, and determining sales tax nexus and rates. Mistakes lead to penalties, interest, and compliance headaches. Navesink Tax & Advisory LLC coordinates initial registration, system setup, and ongoing filings so you stay compliant from your first hire or sale.

  • What's the biggest mistake new business owners make with taxes?

    Choosing the wrong entity structure or failing to set up estimated tax payments from the start often results in surprise tax bills and cash flow problems. Many also mix personal and business finances, complicating bookkeeping and audits. Early planning and proper structure save both money and stress down the road.

  • Can stock options or RSUs affect my tax return?

    Yes—stock options, RSUs, and bonuses create taxable events that can push you into higher brackets, trigger AMT, or require estimated payments. Timing the sale or exercise strategically reduces tax impact. At Navesink Tax & Advisory LLC, we plan around equity compensation to minimize surprises and coordinate with your overall financial picture.

  • What does a trust or estate tax return involve?

    Trust and estate returns report income earned by the trust or estate, distributions to beneficiaries, and any applicable federal inheritance taxes. They require careful documentation and coordination with executors, trustees, and attorneys. We guide families through filings with clarity and sensitivity during complex transitions.

  • How often should I review my business financials?

    Monthly or quarterly reviews help you track cash flow, spot trends, and adjust strategy before small issues become big problems. Regular meetings provide accountability and clarity for growth decisions. Navesink Tax & Advisory LLC offers advisory services that turn your numbers into actionable insight and long term planning support.

  • What's involved in setting up a new business entity?

    You'll need to choose the entity type, file formation documents with the state, obtain an EIN, register for payroll and sales tax if applicable, and establish bookkeeping. Each step affects compliance and tax obligations. We handle entity selection, registration, and initial system setup so you start on solid ground.

  • Can I negotiate a payment plan with the IRS?

    Yes—the IRS offers installment agreements and other payment options for taxpayers who owe but cannot pay in full immediately. Approval depends on your balance, compliance history, and financial situation. At Navesink Tax & Advisory LLC, we negotiate terms, prepare documentation, and help you avoid default or enforced collection.