your consulting corporation has accumulated earnings of $225,000. you need with your tax advisor to find out whether there will be tax consequences...

your consulting corporation has accumulated earnings of $225,000. you need with your tax advisor to find out whether there will be tax consequences for your accumulated earnings. your advisor would explain that you likely would:

1. avoid the accumulation earnings penalty, since you are below the accumulated earnings limit for small corporations
2. be subject to a penalty since your earnings are above the 535 limit for a personal service corporation
3. avoid the accumulated earnings penalty, since such accumulations are justified in an uncertain economy
4. be subject to the penalty since consulting entities are not allowed to accumulate earnings