Have you been dreaming about starting your own business? Congratulations! But now what? There is a lot to think about when establishing your new business. One of the first steps for many entrepreneurs is setting up their business entity—whether you’re a rideshare driver, a real estate professional, or a graphic designer, setting up your business […]
Incorporation
What is an S Corporation?
According to the IRS, S Corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S […]
Rethinking Your Business Entity Choice in Light of the TCJA
The Tax Cuts and Jobs Act (TCJA) made historic changes to the federal tax code. While all types of business entities have received a significant tax break, some have fared better than others. Depending on your business, it may be to your advantage to rethink your current business structure. Keep in mind, though, that there are […]
Taxation of Corporations: C Corporation and S Corporation
There are generally two ways corporations may be taxed under the federal rules. By default, a corporation is taxed under Subchapter C of the Internal Revenue Code. However, a corporation may instead elect to be taxed under Subchapter S of the Internal Revenue Code. The selection of a certain type of entity structure or election […]
Pros and Cons of Entity Formation for Independent Contractors
One of the first and most important decisions independent contractors make is how to structure their business. The IRS offers a number of different legal business structures independent contractors can form under. Each of these types of entity formation have specific pros and cons that independent contractors should consider. Sole Proprietorship Whether they’re an athlete or a […]
Documents Required for Corporate Entity Formation
Forming a corporation can be an exciting time in the life of a business. It can also be lots of work. In order to become a corporation, your business will need to file documentation in the state of your choosing. You can file documentation for your corporation in any state you want. Some states have […]
When Is It Time to Become an S Corporation?
For most new businesses and business owners, keeping it simple is key. After all, launching a new business requires attention to detail and doing many things right. For that reason, most new businesses start out simply as a sole proprietorship or a Limited Liability Company (LLC). As a successful business matures, however, the savvy owner […]
Figuring Out the Best Corporate Year End Date
The year end date is important as it identifies the end of a corporation’s business year and can have an impact on tax planning. It has to be determined for a corporation’s first tax filing and is typically the last day of a month. So what year end date should you choose? Discussion There are […]
Doing Business in Another State: Foreign Qualification
To be successful and generate a profit in today’s business world, many business owners are finding that it is important to conduct business outside of their local vicinity. In fact, many businesses that are located in one state are doing business in a number of other states. When a company is doing business in a […]
The Top States for Low and No Corporate Income Tax
There are a number of considerations that a business owner may take into account when deciding upon the best state in which to incorporate. One factor that is often important to business owners is the taxes that will be imposed on the newly formed corporation. Both the type of taxes for which a business is […]
