by Action Tax | Glossary
S Corporation A small corporation which elects sub-chapter S tax treatment. This tax treatment allows the corporation to avoid federal level taxation. Corporate Profits and Losses are passed through to the shareholders. SIMPLE (Savings Incentive Match Plan for...
by Action Tax | Glossary
Rate of Return The gain or loss of an investment over a specified period of time, expressed as a percentage of the original investment cost. Rated Policy An insurance policy that covers a higher risk for a higher than usual premium. Ratio Relative size, expressed as...
by Action Tax | Glossary
Qualified Plan A retirement plan that meets the requirements of Section 401(a) of the Internal Revenue Code and is eligible for tax-favored treatment. Quorum The minimum attendance required to conduct business at a meeting. Usually, a quorum is achieved if a majority...
by Action Tax | Glossary
PITI The four components of a mortgage payment: principal, interest, property taxes and insurance. Paid in Capital Requirements A few states require corporations to have a specified amount of paid-in capital prior to starting business. These states include CT, DC, SD...
by Action Tax | Glossary
Offering Price The per share price at which a stock or mutual fund is offered to the public. The market price may be more or less than the offering price. Officers Officers are people who are appointed by the directors. They manage the daily affairs of the...
by Action Tax | Glossary
Name Reservation The name of a corporation or LLC must be distinguishable on the records of the state government. If the name is not unique, the state will reject the articles of incorporation or articles of organization in the case of LLCs. A name can be reserved,...
