How Entity Structure Can Impact Tax Liability?

Are you the owner of a trade or business?  If so, what type of entity are you, e.g., Sole Proprietor, LLC, or C-Corporation?  Did you elect to be taxed as an S-Corporation?  How long ago did you choose this entity and why?  How do you know if the entity that you selected in the past is still the right choice for you today?

Factors to consider in selecting a business entity may include: Liability Protection, Tax Treatment, Ability to Raise Capital, Ease of Formation & Maintenance, and Governance & Operations.  All of these are important factors to consider and your business needs frequently change over time.  With recent changes to the tax law under the Tax Cuts and Jobs Act, choosing the right entity can and often does have a major impact on your tax liability.  This should be reviewed as part of your fall tax planning.

If you are not currently working with a CPA who is helping you with your tax planning and you make at least $150,000/year,  we would be happy to provide a complimentary review of your 2019 tax return to see if we can help you save money in taxes.