IIMs say CAT 2017 registrations lower than 2016

Apart from the IIMs, several other business schools use the Common Admission Test (CAT) score for admission. CAT 2017 will be held on 26 November. Photo: HT

Apart from the IIMs, several other business schools use the Common Admission Test (CAT) score for admission. CAT 2017 will be held on 26 November. Photo: HT

New Delhi: The Indian Institutes of Management (IIMs) said Monday that while an extended registration window propelled the Common Admission Test (CAT) registration numbers to nearly 231,000, these were still slightly below the 2016 numbers.

By the original deadline of 20 September, the IIMs had received around 211,000. They subsequently extended the deadline to 25 September.

In 2016, the IIMs received 232,434 applications for the test. Apart from the IIMs, several other business schools use CAT score for admission.

“The final registration numbers are around 2.31 lakh. Around around 20,000 (registrations) were added during the extended window,” said Neeraj Dwivedi, convener of CAT 2017.

Dwivedi, also a professor of IIM Lucknow, said exact numbers would be available on Tuesday.

India has 20 IIMs admitting nearly 4,000 students into their flagship post graduate programme in management.

IIM Lucknow, which is conducting CAT 2017, will allow candidates to correct errors in application between 27 and 30 September. CAT 2017 will be conducted across 140 cities on 26 November.

[“Source-livemint”]

US markets lower after tech reversal from record highs

Businessman sleeping with bear with down trend graph

US markets closed lower on Thursday after technology sector rolled over.

The Nasdaq composite closed 0.6% lower at 2,475.42 and fell more than 1% earlier in the session. The S&P 500 also closed lower at 6,382.19, slipping 0.1% as tech stocks dropped 0.8 % to lead decliners.

The tech sector had notched an intraday record earlier in the session, along with the Nasdaq and the S&P.

Tech faced pressure as investors took profits off the table following strong earnings from companies in the space.

The Dow Jones Industrial Average, outperformed, closing 85.54 points higher at 21,796.55 level and notching intraday and closing records.

Meanwhile, initial jobless claims came in at 244,000, slightly above the expected 240,000. Durable goods orders, meanwhile, rose 6.5% in June.

Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.

[“Source-indiainfoline”]

Will an LLC Help Lower Your Business Taxes?

Whether it’s driven by a desire to escape self-employment taxes or looking to avoid that “double taxation” whammy, small business owners ponder which legal structure is right for their business and financial situation.

The LLC is often associated with “pass-through taxation,” meaning the LLC itself does not pay taxes. Rather, income from the business is passed to the company’s owners (aka members) who then claim these profits on their personal tax forms.

However, the LLC actually offers flexibility when it comes to federal tax treatment. This is because the LLC is an entity created by state statute. The IRS allows the LLC to be taxed as a corporation, partnership or sole proprietor, depending on elections made by the LLC and the number of members.

Under federal law, an LLC is classified as one of these types of taxable entities:

Single-member LLC as a “disregarded entity”

In this case, you’re the sole owner of the LLC and you report business income on your Schedule C tax form, as well as pay self-employment tax on the profit on the Schedule SE form. This is what’s typically called pass-through taxation, as the LLC does not need to file any tax forms. You will only need to pay self-employment taxes if you are engaged in an active trade or business; for example, if you provide a service to clients or sell a product. If you formed an LLC for a passive activity, like real estate investments, you will not have to pay self-employment tax on the profits (and in that case, you’d report your passive profits on Schedule E).

For example, Anne is a wedding photographer and formed an LLC for her business. The LLC earned $42,000 in profit this year. She will pay taxes on this $42,000 at her individual tax rate, as well as pay self-employment taxes (currently 13.3 percent for the calendar year 2011 for the first $106,800).

Multiple-member LLC as a partnership

With this arrangement, there are multiple members who own the LLC as partners. Unlike the single-member LLC described above, in this case, the multiple-member LLC reports its business income on a separate 1065 partnership tax return. Then, each partner pays self-employment taxes on their share of the partnership profit on the Schedule SE tax form. As with the single-member LLC, self-employment taxes only need to be paid if the LLC engages in an active trade or business.

LLC as a C corporation

An LLC can elect to be treated as a corporation for tax purposes by filing Form 8832 with the IRS. In this case, the LLC files a corporate tax return 1120. And the LLC profits are not subject to self-employment taxes. However, if the LLC profits are distributed to LLC owners in the form of dividends, those dividends are taxed again at the 15 percent qualifying dividend rate. The LLC treated as a C corporation is also responsible for payroll taxes on any wages paid to LLC members who work in the business.

For example, Paul owns a consulting company which earned $80,000 in profit. As a C corporation, the business would pay $27,200 in taxes on this income (assuming a 34 perent tax rate). If Paul then takes home that profit as a dividend, he would also owe taxes (at the 15 percent qualifying dividend rate) on the dividend payment.

LLC as an S corporation

In this case, the LLC elects to be treated as an S corporation. The S corp files an 1120S tax return, but the company’s profits are not subject to corporate income tax (like they are in the C corporation). Instead, individual LLC owners are taxed on their respective shares of the company’s profits (and profits are not subject to self-employment tax). If an LLC owner works in the business, they must be paid a reasonable wage for their activities and the LLC must pay payroll taxes on these wages.

Let’s say three sisters started an organic ice cream business and each own one-third of the business. They form an LLC and elect to be taxed as an S corporation. In the first year, their business earns $90,000 in profit. The ice cream business does not pay income tax on the profit. Instead, each sister includes her share of the profit ($30,000) in her taxable income on her individual tax return. And if their business lost $45,000 in the first year, each sister would include a $15,000 loss in her individual taxable income.

Choosing the right tax entity for your LLC is a weighty issue and will ultimately depend on all the unique aspects of your particular business needs, vision and circumstances. Investigate your options and stay on top of changing tax developments on both the federal and state levels that could affect your taxes.

Most importantly, know that the LLC is great for small business owners who want liability protection, but would prefer minimal formality (and paperwork). It’s also a perfect structure for a business with foreign owners, as anyone (C corp, S corp, another LLC, trust or estate) can be an owner of an LLC. So take some time and educate yourself on the benefits of forming an LLC and what tax treatment is best for you. After all, both you and your business are worth it.


Image from Pixelbliss/Shutterstock

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[“source-smallbiztrends”]