Six tips for people starting a new business

Here are six tips for new business owners. Choose a business structure. The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are: Sole proprietorship: An unincorporated business owned by an individual. There’s no distinction between the taxpayer and their business. Partnership: An unincorporated business with ownership shared between two or more people. Corporation: Also known as a C corporation. It’s a separate entity owned by shareholders. S Corporation: A … Continued

Family Business Succession Planning Opportunities

  Any family business, however successful, will reach a day when ownership must change hands. A plan of succession for ownership of business interests ensures that the business will continue to operate with a minimum of disruption and can also provide tax benefits to the owner and the successor. The authors detail the various options available to business owners looking to establish succession plans, noting where CPAs can leverage their position as trusted advisors to assist clients with establishing such … Continued

Comparison of Forms of Business Ownership

Sole Proprietor C Corporation S Corporation LLC Lawsuit protection for owners when business is sued? NO YES YES YES Asset protection for business assets when owner is sued? NO NO NO YES Additional business tax deductions available? NO YES YES YES Who is taxed on business profits? Owner Corporation Shareholder Your choice – Owner or Company When to use? Not recommended Own a business, to take advantage of lower corporate taxes compared to individual income taxes, publicly traded company, to … Continued