Posts Tagged ‘Subchapter S Corporation’

Why Some Small Businesses Should NOT be an LLC

June 9, 2013 Small Business 3 Comments Print this page Share

The Limited Liability Company (“LLC”) certainly has become a popular form of business entity.

If there is only one member (owner) then setting up these entities has become a breeze.

Just go online, fill out some forms, pay the registration fee and presto, you’re in business.

Just because it’s easy, doesn’t mean you should do it this way.

Why an LLC?

Where’s My K-1?

March 10, 2013 Tax News 0 Comments Print this page Share

This question is asked frequently during tax season.

I suspect it will be asked even more this tax season.

There will likely be even more delays this year than in past years. Congress passed The American Taxpayer Relief Act of 2012 on the last day of 2012. President Obama signed this legislation on January 2, 2013. This has delayed the IRS, which will delay tax preparers.

Why The New Medicare Tax May Cost You More Money

June 26, 2012 Tax News 0 Comments Print this page Share

Current Medicare Tax

Currently taxpayers pay 1.45% Medicare Tax on their earned income. This is from a W-2 for employees and net-income from self-employed individuals. The employee pays this amount and the employer matches it, therefore they remit 2.9% to the government. A self-employed individual is considered to be both the employer and employee and therefore currently pays 2.9% Medicare Tax.

The Difference Between a C Corporation and a Subchapter S Corporation

April 17, 2012 Tax News 0 Comments Print this page Share

Business owners can maintain their corporation as a regular or “C” Corporation. Alternatively, if they are eligible, they may want to make a Su bchapter S Election. Both are treated as separate legal entities. Here are the differences however:

C Corporation

While a C Corporation is a separate legal entity, it is also a separate taxable entity. The corporation will pay income taxes on any taxable income reported.