Anyone who is starting a new business or considering changing their business entity needs to determine what will work best for them. Should they operate as a C corporation or as a pass-through entity such as a sole proprietorship, partnership, limited liability company (LLC) or...
If a small business is operated as a sole proprietorship, the owner may have thought about forming a limited liability company (LLC) to protect his or her assets. Or, if the owner is launching a new business, he or she may want to know what...
Holding a vacation home shared by family members in a limited liability company is one option that can offer important benefits. This short article lists several: asset protection, ease of management, ownership restrictions and estate planning advantages....
It’s common for owners of closely held businesses to transfer money into and out of the company. But it’s critical to make such transfers properly or risk unwanted IRS attention. This article explains how and why a transfer should be defined as a loan —...
It’s not uncommon for businesses to sometimes generate tax losses. But the tax law limits deductible losses in some situations, and the Tax Cuts and Jobs Act limits them even further for pass-through entities. This article explains how and why the rules have changed following...
Spouses who own profitable, unincorporated businesses often find the high self-employment (SE) tax bills burdensome. Fortunately, there may be ways to ease that burden. This article suggests two ways that spouse-owners can lower their tax bills....
The IRS has treated owners of LLCs and LLPs as limited partners for purposes of the passive activity loss rules. This could be a tax negative. As this article explains, however, LLC and LLP owners can now be treated as general partners, which means they...
Keeping up with the complexity of the Internal Revenue Code is challenging enough for employed individuals. But for owner-employees, the difficulty level is particularly high. This article explains how your business structure determines the rules you must abide by....