Best Tax Structures for a Small Business.pptx

Discover the best tax structures for small businesses to maximize savings and ensure compliance with our expert business tax solutions.

1. Best Tax Structures for a Small Business

2. Benefits: Simplicity: Easiest and least expensive to set up and maintain. Control : Full control over business decisions. Tax Filing : Income and expenses are reported on the owner's personal tax return (Form 1040, Schedule C). Sole Proprietorship

3. Partnership Benefits: Simplicity: Relatively easy to set up. Tax Filing : Income is passed through to partners and reported on their personal tax returns (Form 1065).

4. Limited Liability Company (LLC) Benefits: Liability Protection: Personal assets are generally protected. Flexibility: Can choose to be taxed as a sole proprietor, partnership, S corporation, or C corporation. Pass-Through Taxation : By default, profits and losses pass through to the owner's personal tax return, avoiding double taxation.

5. S Corporation (S Corp) Benefits: Tax Savings: Profits and losses pass through to shareholders’ personal tax returns, avoiding double taxation. Salary and Dividends: Can pay owners a salary (subject to payroll taxes) and the remaining profits as dividends, which are not subject to self-employment taxes.

6. (718)-554-0900 Trusted Business Tax Solutions