Latchaw Financial Services

We have developed a reputation for professional excellence through

the high quality of services we perform for our clients.

We are a full service accounting firm located in Charlotte, Michigan. We will have served the surrounding area for 25 years!

We have been providing tax preparation, accounting for businesses, retirement, tax and estate planning and many other accounting services to a wide range of clients, including both businesses and individuals, throughout the greater Lansing Area.

We are proud to have developed a reputation of small town manners with big city professionalism. This is due to our high quality of services we perform for our clients. After all, we view our success based on our clients success.

Current Michigan Tax Update:

As you may know, on January 1, 2012, we will witness the death of the Michigan Business Tax. You will recall that it was passed into law in the middle of the night in the fall of 2007. It took effect on January 1, 2008, but no returns could be filed until April of 2009. Since then it has been amended over 80 times. It is a second tax on the gross receipts and business income of all business that gross over $350,000. If you paid MBT on your business and operated as an LLC or S corporation, you paid state income tax on the same income again on your personal return. The new law eliminates that double taxation. The MBT has been a thorn in the side of many businesses (and accounting firms). We welcome its death.

The new Michigan Corporate Income Tax (CIT) takes effect on January 1, 2012. It was not phased in therefore those of you who file on a fiscal year basis may once again be filing two Michigan tax returns for your fiscal year ending in 2012.

How will it affect you? Only C corporations will be filing the new CIT. So those of you who operate as LLC’s, or S corporations will no longer be filing a Michigan business return. Remember that the profits of an LLC or S corporation pass through to the owners and are taxed on the owners personal tax return so you are not avoiding a tax all together. Michigan’s personal tax rate will be 4.35% for 2012 and the new CIT rate will be 6%. Those of you, who operate as a C corporation, may want to review the pros and cons of switching your form of business to avoid the higher rate. Call us, we can help you with that decision.

See more updates here.