Filing taxes by entity

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...

When you own an S corporation or an LLC taxed as an S corporation, you can receive a salary for the work you perform and distributions from your company's profits. Distributions offer an efficient way to transfer profits to shareholders but come with essential tax considerations. Key questions include whether these distributions are tax-free,...

Choosing the proper tax classification is crucial for your small business. Tax status affects your tax rates, liability, operational flexibility, and overall growth trajectory.  Eligible companies can select how they will be taxed with Form 8832, Entity Classification Election, provided by the Internal Revenue Service (IRS). What is Form...

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...

Dissolving an S corporation is an important decision with significant tax implications. Whether due to economic reasons, strategic changes, or shareholder agreements, understanding the tax consequences is essential to ensuring compliance and minimizing the financial impact. This article examines the tax consequences of dissolving an S...

Filing taxes as an S corporation in the United States requires meticulous attention to detail and a deep understanding of specific IRS requirements. Form 1120-S is the cornerstone of this annual financial reporting, serving as an S corporation's US income tax return. This form not only ensures compliance with federal tax obligations but also...

"Tax compliance is not just about paying what you owe but also about understanding the opportunities within the tax code. An informed approach to filing your LLC taxes, even with no income, is a step toward financial savvy and business success." – Jane Smith, CPA Starting a Limited Liability Company (LLC) is a significant step toward...

For owners of LLCs, determining the most efficient way to pay themselves is a critical aspect of financial management that directly impacts personal income and tax obligations. The flexibility of an LLC offers numerous benefits, but it also introduces a variety of compensation options, each with its own effects. This article aims to serve...

Understanding all the complexities of tax obligations while managing an LLC not only ensures compliance with the Internal Revenue Service (IRS) but also optimizes tax benefits. Among the myriad tax forms and requirements, the 1099 form stands out for its relevance to LLCs, especially those engaging independent contractors and...

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...

A limited liability company (LLC) is one of the most common types of legal business entities. Even if something goes wrong with your business, your personal assets will remain safe from potential liabilities. The key benefit of an LLC is the opportunity to choose how you want to be taxed. LLCs do not have their own tax classification;...

A limited liability company (LLC) is a business structure that protects its owner's or owners' personal assets and retains the tax advantages of a partnership or sole proprietorship.  LLCs are easy to form and run, simplify taxes, and require fewer corporate formalities. These are the reasons why LLC is so popular among small businesses in...