KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** comment on S or C Corp July 31, 2025 ************************ comment on S or C Corp from article on July 18, 2025 ************************* Ken, I see that your friend Anon has gotten himself into trouble again. In your July 18th blog he mentioned that you had stated that if an alarm company was a C Corp that they should “switch to and S Corp, quickly.” I know that by “quickly” you meant without delay. Most C Corporations in this industry should elect S corporation status. Yes, they need to address their situation with a competent advisor without delaying, but they don’t need to run stoplights getting to their nearest IRS office to file the form. As usual, your advice was spot on… Call my firm. Although electing S corporation status is usually the correct solution this is not a one size fits all situation. It is important for the tax professional to assess a company’s situation and recommend the solution based upon the client’s unique circumstances. It is also important to find a tax firm that understands that substantially all alarm companies have a huge intangible asset, RMR. Most accountants don’t know that it is there until it is sold and the IRS wants to tax it. At that point the tax liability is carved in stone. Alarm company owners should also keep in mind that electing to be taxed as an S Corporation is a tax event only. It has no effect on the legal status of the entity. Mitch Reitman 817 698 9999 XT 101 Reitman Consulting Group Fort Worth, TX ********************* Response ********************* A topic no one really wants to think about, let alone do anything about. But we all know the old slogan, so we know that eventually taxes is something we do need to deal with. Better now, not when all you are talking about is what you absolutely owe. No one will want to hear about what you "should have done" bla bla bla. Call Mitch and find out the potential damage now and find out if he can help you do something about it. ********************** STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** WEBINARS: https://www.kirschenbaumesq.com/page/alarm-webinars *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ******************** Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth *********************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* PODCASTS: https://podcasts.apple.com/us/podcast/ken-kirschenbaum-presents/id1794851477 ************************* Getting on our email list / Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
