When it comes to setting up a business, the entity you choose can make all the difference. While there are positives and negatives that come with each one, you will need to decide which type of entity is going to work the best for your business so that you can grow and really have the freedom that you need to do well. One type of business entity you may choose to go with is an s-corporation. This is a choice that a lot of business owners are going to choose, but you must be aware that there are some extra burdens, such as accounting work and some expenses that come with having this entity. But there are a lot of benefits that can make it all worth your time.
If you are considering choosing s-corporation as your business entity, or you already have this as your entity, and you need some assistance with getting everything done, make sure to contact the professionals James Wells EA MBA Tax Office. We have experience working with these corporation styles and can make sure you are prepared to take on all the hard work while enjoying all the benefits that come with this type of tax filing.
Accounting and Legal Benefits
There are a lot of great benefits that come from having an s-corporation as your business entity. For starters, the tax accounting is usually a little easier for this kind of corporation compared to a partnership or going with a c-corporation. This could save you a lot of time and money since your tax professional is not going to need to work as hard to get the tax paperwork done. In addition, if your business gets into some financial trouble, you are removed from the business. Someone can sue your business in this arrangement without you losing personal property or assets. This is one of the things that attracts business owners to this entity; they like the control they are able to have without having to put up all their personal assets in the process.
If you would like to know a bit more about some of the accounting and legal benefits that come from choosing this business entity or you have questions about whether this is the right choice for you, make sure to contact the professionals at James Wells EA MBA Tax Office to get the help that you need.
Tax Savings
As a business owner, you are always looking for ways to save money when it comes to tax season. This is a tough time of year for businesses, especially if you are new and haven’t started paying in on estimated taxes. Choosing the s-corporation can make it so much easier to get the tax benefits that you want. While you are going to have to work hard to keep all the paperwork in order and there is more accounting work to do than other businesses, the amount that you save on your taxes can really make it worth your time. If you don’t have time to do all this extra work, consider hiring the professionals at James Wells EA MBA Tax Office to get started. We can take on the extra accounting and find you all the tax deductions you deserve so you can focus on your business and still keep that extra money in your pocket.
Payroll Tax Savings
This is technically another tax saving option, but it is going to make a big difference in how you run your business. If you are not part of an s-corporation, you are going to have to pay the full extent on the amount of money that you brought in, taking off the deductions and credits that you earned throughout the year. On the other hand, being a corporation means you are only taxed on the amount that would be considered a reasonable salary for you. This means that if you made about $40,000 on the business but the business brought in $150,000, you would only be taxed on that lower number that you brought up. Without the corporation protection, you would have to pay the much higher taxes that come with the bigger number.
The s-corporation status is not for everyone. There are lots of businesses that choose to have more power over their business model or who don’t want to deal with all that extra paperwork. Luckily, there are many other business entities that you can choose to go with and some of them may be better suited for your needs.
No matter which business entity you choose to go with, make sure to pick the one that is right for you. The professionals at James Wells EA MBA Tax Office can take a look at your business structure and then explain the benefits and negatives of each business venture that you may go with. Take the time to look at the s-corporation and determine if it is going to provide all the benefits that your company needs.
When you are ready to choose s-corporation as your business entity and want the professional help you need to get it all off the ground and working, make sure to contact Jim Wells with James Wells EA MBA Tax Office in Santa Cruz, CA. Our professionals can help you work on this, or any other, business entity so you can concentrate on making your business amazing. Contact us today to get started.
James Wells EA MBA Tax Office