In today's competitive landscape, choosing the right legal structure for your business is paramount for success. Keeping your home-based business legal involves choosing its legal structure: sole proprietorship, partnership, or corporation. The structure you opt for impacts your taxes and dictates your liability, governance, and compliance requirements. This is necessary for … [Read more...] about Choosing the Legal Structure of Your Business
S Corporation
Types of Business Entities and Its Pros and Cons
Before starting a business, we need to understand how a typical business runs. One of the key concepts to understand is the business entities. It is how your business would be organized and controlled with your desired business structure, from which it will be determined whether you want it to be run by yourself alone, or with the cooperation of several partners. Each … [Read more...] about Types of Business Entities and Its Pros and Cons
S Corporation vs. LLC: Which Structure is Right for Your Business
Determining the type of legal structure for a new business can be daunting for entrepreneurs and small business owners. Corporations and limited liability companies (“LLCs”) are preferred business structures because, unlike sole proprietorships and partnerships, both offer liability protection. This means that the owner of a company cannot be held personally responsible for the … [Read more...] about S Corporation vs. LLC: Which Structure is Right for Your Business
S Corporation Taxes for Employees and Shareholders
QUESTION on S Corporation Taxes for Employees and Shareholders There are three of us that would like to start a concrete masonry business. We are looking at an S Corporation, thinking this set up may fit our needs. We want to make sure that all three have equal ownership and profits. However, two members will be doing the work and the third is a business associate only. So … [Read more...] about S Corporation Taxes for Employees and Shareholders
S Corporation Reasonable Compensation Tips
Subchapter S corporation reduce substantially the payroll, or employment taxes, that business owners pay when shareholder salaries get set to a modest level. But you need to be reasonable. The IRS watches S corporation shareholder-employee salaries very, very closely. Fortunately, you can use several tricks to effectively push down the salary you need to pay yourself. S … [Read more...] about S Corporation Reasonable Compensation Tips