Filing taxes by entity

S corporation taxation is usually quite challenging for small business owners. However, knowing the benefits and requirements of an S corp can greatly benefit your business in both the short and long term. This guide explains what distinguishes S corporations from other tax statuses and offers tips on reducing your business tax bill....

Choosing the right business structure is a critical decision for any business owner. The structure you choose will affect your taxes, personal liability, and ability to raise capital. Among the various options available, S corporations and C corporations are two of the most popular. Understanding the differences between these two structures...

Starting a business involves many decisions, one of which is choosing the proper business structure. An S corporation is a popular choice for many entrepreneurs due to its favorable tax benefits and liability protection. This article aims to provide a comprehensive guide to forming an S corp, highlighting the steps involved, benefits, and common...

S corporations represent 76.7% of all active corporate tax returns in the US. Small business owners find S corp tax status appealing because of significant tax benefits. Unlike traditional corporations, S corporations do not pay income taxes. Instead, the company's profits and losses pass through to the owners' personal income tax...

As an S corporation owner, it is important to understand your tax obligations. One key form you need to be familiar with is Schedule K-1 (Form 1120-S). This guide will help you navigate the complexities of 1120-S Schedule K-1 to ensure compliance and maximize available deductions and credits. What is Schedule K-1? Schedule K-1 is a tax...

Choosing the right tax classification for your business is critical to your financial health, liability protection, and administrative responsibilities. Two popular options for small business owners are the sole proprietorship and the S corporation. Each structure has its advantages and disadvantages, so it is important to understand the...

Small business owners often choose an S corporation tax status due to its pass-through taxation advantages. To elect this tax classification, you must file the Internal Revenue Service (IRS) Form 2553, Election by a Small Business Corporation, in a timely manner. However, if certain circumstances arise, you may need to file a late S corporation...

Choosing a tax classification for your business is one of the first and most important steps in setting up. However, in some situations, businesses might have reasons to change their tax status when already operating.  The Internal Revenue Service (IRS) allows such changes through specific regulations. To elect an S corporation tax status...

Starting a Limited Liability Company (LLC) is a significant step toward establishing your business presence. However, navigating the tax landscape can be challenging, especially for new LLCs that haven't generated income. Understanding how to file taxes for an LLC with no income is crucial for maintaining compliance with the IRS and...

As a business owner, understanding the nuances of how your LLC is taxed is critical to making informed financial decisions.  This guide is designed to demystify the complexities surrounding multi-member LLCs and help you navigate the tax landscape with confidence.  What is a multi-member LLC? A multi-member limited liability company...

When starting a business, choosing the right structure is critical to its success and growth. Many business owners choose an LLC for its flexibility, simplicity, and protection. However, as the business grows, the initial structure may no longer be in the best interest of the business in terms of tax benefits and growth potential. In this...

When business owners reach a certain stage of growth or start planning for the future, they often consider changing their business structure to better suit their needs. One common transition is to convert an LLC to a C corp. This decision can have a significant impact on the company's financing options, tax obligations, and growth...