Significant changes to tax laws can ripple through every corner of the economy, impacting how individuals and businesses manage their finances and make decisions. In years marked by tax reform, careful income tax planning becomes a vital tool to stay ahead. And 2025 may be one of the most important years in almost a decade […]
business owners
Taxation of LLCs
Limited Liability Companies (LLCs) have become a popular choice for entrepreneurs and small business owners due to their flexibility and liability protection. One of the key advantages of forming an LLC is the flexibility it offers regarding taxation.
By default, LLCs are pass-through entities, which means that the business’s profits and losses are reported on the owners’ personal tax returns. However, LLCs also have the option to change this default treatment through a tax election (aka the “check-the-box election”). No matter what election you make for tax purposes you will still legally be an LLC and no tax election would change that.
5 Things Every S Corporation Owner Should Know
There are few things in the tax world that have as much misunderstanding and misinformation than S Corporations. S Corporations can help small businesses achieve various goals but only if set up and administered correctly with a good understanding of the tax law. Below are 5 things every S Corporation owner should know, and should have known prior to being taxed as an S Corporation.