Operating an LLC—or a corporation—taxed as an S-corp can provide significant tax savings to small businesses at every level.

Business entity type and tax structure impact your organization’s finance and compliance requirements. Two popular choices are limited liability companies (LLCs) and S-corps. Although the arrangements ...

Getting the choice of entity right at the start is crucial, since switching later can have tax and other consequences. Getting the choice of entity right at the start is crucial, since switching later ...

LLC vs. S-corp vs. C-corp: Which is best for you in 2025? More than 5 million new business applications were filed across the United States last year, according to the U.S. Census Bureau. That pace ...

If you’re self-employed, one way to help avoid higher Social Security and Medicare taxes is to organize your business as an S-corporation. If you’re self-employed, you’ll usually have to pay higher ...

1. Reduced self-employment tax burden Active business owners often grapple with substantial self-employment tax burdens. However, adopting the S corporation election could be one way to manage this ...

When you’re setting up a business, choosing the right corporation type can feel like a big deal. It’s not just about the name; it’s about how your business will be taxed, how you’ll handle ...

CPAs can help their clients determine what is a reasonable salary to pay shareholder employees (SEs) of S corporations, thus satisfying an IRS priority to collect proper amounts of employment taxes.

IRC section 1363(d) generally requires a C corporation that elects to become an S corporation to include a “Lifo recapture amount” in its gross income. The amount is the difference between the ...