Small Biz Life

As a CPA, Kristin is asked many questions about how small business owners should deal with money and tax issues for small businesses.  There is one question that she is asked to most. How should I form my company? Well, as with most questions involving the government and taxes it is never quite that simple. The common options: S Corporation (S Corp) Limited Liability Company (LLC) Sole proprietorship Partnership There are many reasons to pick any of these selections. However, the first thing you need to understand is an LLC is considered a disregarded entity for tax purposes. That means that if you have one owner, your business will be treated as a sole proprietorship by default. Have two or more owners? Your LLC will be a partnership by default. You can elect that your LLC be treated as an S Corp as well.  If you ever decide to move your sole proprietorship or partnership to an S Corp you will save yourself paperwork if you become an LLC. THE MOST IMPORTANT RULE TO REMEMBER The time you should really consi