Filing taxes by entity

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...

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,...

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...

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...

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...

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...

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...

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;...