Reasonable Compensation for S Corporation Owners
The single most important tax attribute for S Corporation owners is that their share of the entity’s net income is not considered self-employment earning and therefore is not subject to self-employment taxes. In contrast, sole proprietors, LLC members and general partners’ net earnings are subject to self-employment taxes at a 2017 current rate of 15.3% […]
Entrepreneurship: Starting Your Own vs Purchasing a Business
Entrepreneurship has always been a cornerstone of our economy. Some people start a business from the ground up while many others purchase an existing business. Deciding which course of action to take depends upon many factors. Before making a commitment, we suggest you consider the following: The Advantages and Disadvantages of Purchasing Versus Creating a […]
Succession Planning: Protecting and Transferring Your Assets
Because life’s journey is full of both long-awaited milestones and untimely surprises, succession planning is essential for ensuring your business and personal assets are protected and directed appropriately. Forming a well-drafted buy-sell agreement with your business partners, or using various transfer on death arrangements with your family members, is critical to a smooth transition when […]
Business Entity Selection
When the time comes to form your business or to change its legal status, making the correct entity selection is of the utmost importance. Sole proprietorships, general partnerships, s-corporations, and c-corporations, to name a few, each come with important legal and tax distinctions that are crucial to consider within your business’ unique needs. Of particular […]